Answer:
6) Option D
When W1 chooses Take, best response for W2 is also Take since payoff is higher (20 > 10)
12) Option B
When W2 chooses Don't Take, best response for W1 is Take since payoff is higher (40 > 15).
13) Option A
When W2 chooses Take, W1's best strategy is Take since payoff is higher (20 > 10), and when W2 chooses Don't Take, W1's best strategy is again Take since payoff is higher (40 > 15). So W1's dominant strategy is Take.
14) Option D
Yes, none of them want to deviate
15) Option A
Question 11 (1 point) The following information is relevant for questions 11-15. Consider two wrestlers (let's...
Question 16 (1 point) The following information pertains to Questions 16-20 Consider one round of the penalty shoot-outs in hockey (The kicker kicks the ball, the goalie tries to save). This is a simultaneous game. The kicker has two strategies: Kick left and kick right. The goalie also has two strategles: Dive to the left, and dive to the right. The payoffs are given below. The rows correspond to the strategles of the Kicker, and columns correspond to that of...
In previous rounds of the Golden Balls game show, these players have built up a jackpot of £47,250. Now, they must decide how the jackpot will be distributed. Each player in this round of has two strategies: split or steal. The payoffs to each player depend on the strategies played: If both choose split, they each receive half the jackpot. If one chooses steal and the other chooses split, the steal contestant wins the entire jackpot and the split contestant...
The following information is relevant for questions 15-18. Consider the following game. (It'd be very helpful to draw a game tree). Dodgers and Giants are trying to pick draftees, and they have a choice between a high school and a college draftee. Dodgers pick first. After observing their choice, Giants take their pick. If Dodgers pick a high school draftee, and then Giants also pick a high school draftee, they end up with a (monetary) payoff of (4,4) (that is,...
Question 4 (a) Consider the following game: Mercedes-Benz and Honda are the only two firms in the market for automobiles. Each firm has two strategies: produce high-grade vehicles or produce low-grade vehicles. The first entry in the bracket is the payoffs (in $billion) of Mercedes-Benz and the second entry is the payoffs of Honda. Honda's Decision Low-grade High-grade Mercedes- Low-grade (4, 5) (5, 4) Benz's Decision High-grade (8, 6) (6, 2) What is the dominant strategy of Mercedes-Benz? ii. What...
question #12 11 In a two-person repeated game, a tit-for-tat strategy is: When each player pursues his or her own self- interest without any cooperation. When players start off as noncooperative and then cooperate when one or both players show interest in colluding eWhen players start by cooperating and then mimic the other player's last move. When neither player defects. 12 Nash equilibrium is: Where one player maximizes payoff and the other does not. When one player's strategy is the...
L Question 4 (20 marks) Fairwood and Café de Coral are the two biggest local chains of fast food restaurants with outlets all over Hong Kong. Due to the recent economic recession, suppose that each of the above two firms consider offering 30% off for all its food items to gain competitive edge. The expected annu- al economic profit from each strategy is indicated in the table below: Café de Coral Cut prices $20 million Don't cut prices $5 million...
1. Consider the coupon game. But suppose that instead of decisions being made simultaneously, they are made sequentially, with Firm 1 choosing first, and its choice observed by Firm 2 before Firm 2 makes its choice. a. Draw a game tree representing this game. b. Use backward induction to find the solution. (Remember that your solution should include both firms’ strategies, and that Firm 2’s strategy should be complete!) 2. Two duopolists produce a homogeneous product, and each has a...
QUESTION 1 Use the following information to answer questions (1)-(5). Consider a two identical oligopolists facing a market demand corresponding to the equation: P=$160-0.5*Q, where P is the price level and Q is the total supply to the market. The production function of the technology used by each identical olipolist operates according to: q=42+12+ln(w), where w is the unit of labor employed and q the level of production. The total cost of production follows equation: TC=q+q%. The following table summarizes...
Please help me in both questions, thank you very much :) QUESTION 4 John and Louise are trying to figure out how to spend their Saturday night. They will do things together, but value the following three possible activities differently. They can go to a music concert, watch the tennis, or have a picnic in the park. John would prefer to go to the concert but Louise does not really like the music that will be played. Meanwhile, Louise wants...
can you answer questions 7, 10, 11 and 13. thanks! Question Completion Status: QUESTION7 Refer to the following figure showing the reaction functions of oligopoly firms A and B OR, BR Bs Advertising In Nash equilibrium, both firms are maximizing their own profits given the level of advertising expected to be undertaken by the other firm O firm B can increase its profit by unilaterally increasing its level of advertising O firm A can increase its profit by unilaterally increasing...