Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Dad plans to take the two children Bart and Cassie on an outing. Bart prefers Disneyland (D), but Cassie prefers the Modern Art Gallery (M). Each child gets 3 units by going to the more preferred place and 2 units by going to the less preferred place. Dad gets 2 units from either activity.

To choose where to go, Dad will first ask Bart for his choice. Bart will announce one of the two places with Cassie listening. Then Dad will ask Cassie for her choice, and she'll announce one of the two places. If the children make the same choice then the game ends - all three will go there. If the children make different choices, then Dad can choose D or M or he can choose his own favorite, the Encino Galleria (E). He gets 3 from E and both children get 1 from it.
A final rule is this: if the two children make the same choice, then Dad gets 2 extra units, no matter which choice it is.

(a) Draw the tree, and include the payoffs. Compared to the trees we took in class, each endpoint will have three payoffs. So, just making up some numbers, the payoff set 9, 6, 7 at an endpoint means that Bart gets 9, Cassie gets 6 and Dad gets 7.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91614909
  • Price:- $20

Priced at Now at $20, Verified Solution

Have any Question?


Related Questions in Microeconomics

Question suppose a city passes a law requiring that all

Question: Suppose a city passes a law requiring that all coffee sold in the city be brewed using Fair Trade, Shade Grown, No Pesticide coffee beans. These coffee beans can cost more than twice as much as conventional ble ...

Question steven has been your best friend since grade

Question: Steven has been your best friend since grade school. You have decided to quit your jobs and start up a bakery together since you both love bread. He insists he wants to start the business as a partnership. You ...

Question 1 discuss the significance and the impact that the

Question: 1) Discuss the significance and the impact that the environment has on human health. Provide examples and discuss how they relate to the practice of public health today. Your response should be at least 210 wor ...

Question you wish to analyze the pedestrian traffic that

Question: You wish to analyze the pedestrian traffic that passes a given store in a major shopping center. You are interested in determining how many shoppers pass this store, and you would like to classify these shopper ...

Question 1 consider the following utility function and

Question: 1. Consider the following utility function and corresponding marginal rate of substitution for consumption, C and leisure, and L: U = CL square ( just the L is square, the C is normal) and MRS = - L/2C . The co ...

Question suppose that the cost function is given by cg 100

Question: Suppose that the cost function is given by: C(g) 100 5g2 (a) Find the fixed and variable cost. (b) Find the marginal cost (c) Find the average cost and the average variable cost. (d) raw the relationship betwee ...

Question consider a manufacturer that sells its product to

Question: Consider a manufacturer that sells its product to a retailer who resale it to final consumers. The two firms do not have any production costs. The market has 100 consumers of type A and 80 consumers of type B. ...

Question - let y be a random variable distributed as shown

Question - Let Y be a random variable distributed as shown in the accompanying table. y 0 1 2 3 p(y) 0.4 0.3 0.2 0.1 A) Find the mean of Y or, E(Y). B) Find the standard deviation of Y, or sd(Y).

Question internal markets define the term principal-agent

Question: Internal markets Define the term principal-agent problem. What principal agent problems exists in the market? What principal agent problems exist in a firm? What are possible solutions to principal agent issues ...

Question 2-1 your organization collects data on individual

Question: 2-1: Your organization collects data on individual patients shown in Appendix Table 2. Identify whether each variable is measured nominally, ordinally, or as an interval/ratio variable. Nominally 2-2: What stat ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

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.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As