+1-415-315-9853

info@mywordsolution.com

## Economics

 Basic Economics Macroeconomics Microeconomics Business Economics Econometrics International Economics Managerial Economics Game Theory Public Economics

problem 1: Fighting for survival

Two animals are fighting over a prey. The prey is worth v to each animal. The cost of fighting is c1 for the first animal (player 1) and c2 for the second animal (player 2). If they both act aggressively (hawkish) and get into a fight, they split the prey in two equal parts but suffer the cost of fighting. If both act peacefully (dovish) then they also split the prey in two equal parts but without incurring any cost. If one acts dovish and the other hawkish, there is no fight and the hawkish gets the prey.

A) prepare down the normal form of the game (the bimatrix of strategies and payoffs).

B) Find the Nash Equilibria for all possible parameter configurations and given the following restrictions:

v> 0, c1 > c2 > 0, v = 2c1 and v = 2c2.

problem 2: Choosing courses

Pat and Ben have to decide which class to enroll in. There are two options: Wine Tasting and Theoretical Physics. Each individual chooses one class (it can be the same or different). The utility for each person is 4 for attending wine tasting and 2 for attending physics. Furthermore, Pat enjoys Ben’s company and gets an extra utility of x > 0 if they are both enrolled in the same class. By contrast, Ben dislikes Pat’s company and gets an extra disutility of −3 if they are both enrolled in the same class. Suppose that they make their choice simultaneously.

A) prepare down the bimatrix of players actions and payoffs.

B) For each x > 0, find all the Pure strategy and Mixed strategy Nash equilibrium (equilibria?) of the game.

C) Interpret.

problem 3: Bayesian Cournot

Consider the Cournot duopoly model in which two firms, 1 and 2, simultaneously choose the quantities they will sell in the market, q1 and q2. The price each receives for each unity given these quantities is P(q1, q2)= a − b(q1 + q2). Suppose that each firm has probability µ of having unit costs of cL and (1 − µ) of having unit costs of cH, where cH > cL. Solve for the Bayesian Nash equilibrium.

Econometrics, Economics

• Category:- Econometrics
• Reference No.:- M91785

Have any Question?

## Related Questions in Econometrics

### 1 assume that everyone agrees that global warming is both

1. Assume that everyone agrees that global warming is both real and caused by humans. Give two major reasons why bargaining in the spirit of Coase is unlikely to resolve the problem of excess carbon emissions. 2. Two dai ...

### The private demand for drive-in movies is given by p 20 -

The private demand for drive-in movies is given by P = 20 - 0.1Q. The industry marginal cost of showing drive-in movies is given by MC = 0.1Q. a. Graph the private demand and marginal cost curves, and determine the price ...

### 1 if households decide to save more saving in the aggregate

1. If households decide to save more, saving in the aggregate may fall. Explain this in words. 2. Suppose that in the year 2010, Celestial Electronics planned to produce 950,000 units of its portable GPS devices. Of the ...

### Joe won 365000 a year for life in the state lottery use a

Joe won \$365,000 a year for life in the state lottery. Use a labor-leisure choice analysis to answer the following questions: a. Show how Joe's lottery winnings affect the position of his budget line. b. After winning th ...

### In the two-period example in the text suppose the marginal

In the two-period example in the text, suppose the marginal benefit curve for each period has a vertical intercept of 100 and a horizontal intercept of 50. What is the optimal consumption level in each period if the tota ...

### Explain why the european central bank cannot selectively

Explain why the European Central Bank cannot selectively change interest rates in any of the 16 EU countries that have adopted the euro-for example, lowering the interest rate to stimulate the economies of Greece, Irelan ...

### Explain how each of the following situations would affect a

Explain how each of the following situations would affect a nation's production possibilities curve. a. A technological innovation allows the nation to more efficiently convert solar energy into electricity. b. A prolong ...

### Ralph is considering purchasing an ostrich which he can

Ralph is considering purchasing an ostrich, which he can graze for free in his backyard. Once the ostrich reaches maturity (in exactly three years), Ralph will be able to sell it for \$2,000. The ostrich costs \$1,500. a. ...

### If the decision to develop and license or wait and imitate

If the decision to develop and license or wait and imitate in Table 16.7 is a simultaneous-play repeated game between Lucent and Motorola for each new generation of technology, what happens if the Motorola payoff in the ...

### Normally people in the united states and from around the

Normally, people in the United States and from around the world think of highly rated corporate or government bonds as a safe place to put their savings relative to common stocks. Because the stock market had performed s ...

• 13,132 Experts

## Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

### WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

### Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

### Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

### Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

### Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro