Ask Question, Ask an Expert


Ask International Economics Expert

problem 1: Fighting for survival

Two animals are ghting 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 fi ght, they split the prey in two equal parts but suff er 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 payo ffs).

B) Find out the Nash Equilibria for all possible parameter con gurations and given the following restrictions: v > 0, c1 > c2 > 0, v≠ 2c1 and v ≠ 2c2.

problem 2: Split the dollar

Players 1 and 2 are bargaining over how to split one dollar. Both players simultaneously name shares they would like to keep s1 and s2. Furthermore, players' choices have to be in increments of 25 cents, that is, s1 ≡ {0, 0.25, 0.50, 0.75, 1.00} and s2 ≡ {0, 0.25, 0.50, 0.75, 1.00}. If s1 + s2 > 1, then player 1 gets s1 and player 2 gets s2. If s1 + s2 > 1, then both players get 0.

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

B) Find the Nash Equilibria of this game.

problem 3: Tragedy of Commons

Two individuals use a common resource (a river or a forest, for ex) to produce output. The more the resource is used, the less output any given individual can produce. Denote by xi the amount of the resource used by individual i (where i = 1, 2). Assume speci cally that individual i's output is xi(1 - (x1 + x2)) if x1 + x2 ≤ 1 and zero otherwise. Each individual i chooses xi ≡ [0, 1] to maximize her output.

a) Formulate this situation as a strategic game.

b) Find the best response correspondences of the players.

c) Find its Nash equilibria.

d) Does the Nash equilibrium value of x1, x2 maximize the total output? (Is there any other output pro le that results in a higher total output than the Nash equilibrium?)

e) Suppose now there are n individuals and hence the payo function of individual i (where i = 1, 2, ....., n) is given by xi(1 - x1 + x2 + .... +xn)) if x1 + x2 + .... + xn ≤ 1 and zero otherwise. Find the Nash equilibria of this game.

problem 4: Fight!

Two people are involved in a dispute. Person 1 does not know whether person 2 is strong or weak; she assigns probability to person 2 being strong. Person 2 is fully informed. Each person can either ght or yield. Each person obtains a payo of 0 if she yields (regardless of the other persons action) and a payo of 1 if she ghts and her opponent yields. If both people ght then their payo s are (-1, 1) if person 2 is strong and (1,-1) if person 2 is weak. Formulate the situation as a Bayesian game and nd its Bayesian equilibria if α < 1/2 and if α > 1/2 .

problem 5: Let's Work Together

Two people are engaged in a joint project. If each person i puts in the e ffort xi, a non-negative number equal to at most 1, which costs her c(xi), the outcome of the project is worth f(x1, x2). The worth of the project is split equally between the two people, regardless of their eff ort levels.

a) Formulate this situation as a strategic game.

b) Find its Nash equilibria when

i) f(x1, x2) = 3x1x2, c(xi) = x2i, for i = 1, 2.

ii) f(x1, x2) = 4x1x2, c(xi) = xi, for i = 1, 2.

c) In each case, is there a pair of eff ort levels that yields both players higher payoff s than the Nash equilibrium eff ort levels?

International Economics, Economics

  • Category:- International Economics
  • Reference No.:- M91965

Have any Question? 

Related Questions in International Economics

1 discuss the key motives behind foreign direct investment

1) Discuss the key motives behind foreign direct investment. Compare (statistically) the FDI of US corporations with those of foreign multinationals in the US. Why do many emerging-market economies welcome FDI by US mult ...

Assignment global economy national economies and

Assignment: Global Economy, National Economies, and Competition In the first part of the twenty-first century a great recession struck most of the countries in the world. The next decade has been severally impacted with ...

International economics 7 calculation questionsplease show

International Economics, 7 Calculation Questions Please show the full calculation. Type or pictures of your handwriting are fine! 1. Consider the following data on August 1, 2016 (annual) interest rates US: 0.3% Brazil: ...

Assignmentexamples of domestic and international terrorist

Assignment Examples of domestic and international terrorist groups and networks: • HAMAS • IRA • PKK • KKK • ETA • Hezbollah • Aum Shinrikyo Note: You may choose any terrorist organization or network that you would like. ...

Projectfor this project you need to analyze and compare the

Project For this project you need to analyze and compare the main economic indicators for 2 countries. The main indicators are listed below and you are to explain what causes each of the indicators to behave in a certain ...

Economics problem seta suppose the united states can

Economics Problem Set A) Suppose the United States can produce 20 tons of FOOD or 8 TRACTORS, and suppose Japan can produce 10 tons of FOOD or 3 TRACTORS. B) What is the opportunity cost of producing tractors in the Unit ...

Research paper for the us and south korea economylester

Research Paper for the US and South Korea Economy Lester Scholl's administrative assistant calls you on Monday afternoon to set up a conference call between you and the chairman tomorrow morning to discuss the board's re ...

Assignmentanalyze measures of economic growth and

Assignment Analyze measures of economic growth, and comparative and absolute advantage in international trade for the following countries: o USA o China o Saudi Arabia o Democratic Republic of Congo NEED 300 WORDS APA FO ...

Consider a model of two stylized countries called germany

Consider a model of two stylized countries, called Germany and China. Germany is an advanced economy with a long tradition of manufacturing highquality goods. China is less developed, but has become the world's secondlar ...

Assignmentaccording to theorist karen horney these 10

Assignment According to theorist Karen Horney, these 10 neurotic needs can be classed into three broad categories: Category 1: Moving Towards People (Compliant)-Need for affection and approval-Need for a powerful partner ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen