Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

To give Mom a day of rest, Dad plans to take his two children, Bart and Cassie, on an outing on Sunday. Bart prefers to go to the amusement park (A), whereas Cassie prefers to go to the science museum (S). Each child gets 3 units of utility from his/her more preferred activity, and only 2 units of utility from his/her less preferred activity. Dad gets 2 units of utility for either of the two activities. To choose their activity, Dad plans rst to ask Bart for his preference, then to ask Cassie after she hears Bart's choice. Each child can choose either the amusement park (A) or the science museum (S). If both children choose the same activity, then that is what they will all do. If the children choose di erent activities, Dad will make a tie-breaking decision. As the parent, Dad has an additional option: he can choose the amusement park, the science museum, or his personal favorite, the mountain hike (M). Bart and Cassie each get 1 unit of utility from the mountain hike, and Dad gets 3 units of utility from the mountain hike. Because Dad wants his children to cooperate with one another, he gets 2 extra units of utility if the children choose the same activity (no matter which one of the two it is).

a) Draw the game tree, with payo s, for this three-person game.
b) What is the rollback equilibrium to this game? Make sure to describe the strategies, not just the payo s.
c) How many di erent complete strategies does Bart have? describe.
d) How many complete strategies does Cassie have? describe.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M939888

Have any Question?


Related Questions in Microeconomics

Question the country of leverett is a small open economy

Question: The country of Leverett is a small open economy. Suddenly, a change in world fashions makes the exports of Leverett unpopular. a. What happens in Leverett to saving, investment, net exports, the interest rate, ...

Question discuss the concepts of engineering projects and

Question: Discuss the concepts of engineering projects and their investment profile. How would you assess the economic feasibility of engineering projects in your organization? Give examples from your organization to sup ...

Question - in february 2015 wal-mart announced that it

Question - In February 2015, Wal-Mart announced that it would increase the pay rate for all its lowest paid workers. Is this wage increase a growth in fixed costs or variable costs? Would it be affected by output? If Wal ...

Question the patient protection and affordable care act

Question: The Patient Protection and Affordable Care Act established a pilot program to expand the use payment bundling for better coordinated care for Medicare beneficiaries. What impact does payment bundling have on he ...

Question suppose the state of iowa passes a law that

Question: Suppose the state of Iowa passes a law that increases the price of cigarettes by $1 per pack. As a result, residents in Iowa start purchasing their cigarettes in surrounding states. Which of the following princ ...

Question there are three industrial firms in happy

Question: There are three industrial firms in Happy Valley: Firm A- Pollution Level=70 Units Cost to reduce Pollution=$20/Unit Firm B- Pollution Level=80 Unites Cost to reduce Pollution= $25/Unit Firm C- Pollution Level= ...

Question what is the difference between a managerialist

Question: What is the difference between a "managerialist" philosophy and a "shareholder primacy" philosophy of corporate governance? What problem was the new doctrine of shareholder primacy thought to solve? The respons ...

Question explain the following theoriesa what is the coase

Question: Explain the following theories: A. What is the Coase Theorem, and when is it likely to be helpful in leading a market with externalities to provide the socially efficient level of output? B. In the theory of co ...

Question trade has income distribution effects for example

Question: Trade has income distribution effects. For example, suppose that because of a government-negotiated reduction in trade barriers, trade between Germany and the Czech Republic increases. Germany sells house paint ...

Question - suppose there is a relationship between park

Question - Suppose there is a relationship between park land and timber extraction of the following sort: Park Land (00 acres) 20, 18, 14, 8, 0 Timber ($) (000) 0, 1, 2, 3, 4 Draw the PPC between park land and timber ext ...

  • 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