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Game theory Example Sample Homework
Question: Suppose that Sven has a V W Cabrio that he would like to sell. Unfortunately, the speedometer on the car is broken and in need of repair. Sven is accustomed to driving the car in this condition and it is worth $3,000 to him fixed or not. Sven would like to sell the car to move up to something with a little more muscle. Jeff and only Jeff is willing to buy the car for $3,500 as is or for $4,500 if the speedometer is fixed. Both Sven and Jeff know each others’ values and that they can get the car repaired at cost by Passport Motors for $600.
Kidney's are not allocated by markets. Discuss the pros and cons of switching to a market for kidneys. Currently, people can volunteer to donate one of their two kidneys,
Which of the following will not produce an outward shift of the production possibilities curve. reduction in unemployment rate.
What does the analysis of the 'hold up' problem contribute to the explanation of the size and scope of firms?
Sometimes market activities have unintended positive or negative effects outside the market scope called externalities. As a rule maker concerned with correcting effects of gases
A policy that results in a Pareto superior outcome will always satisfy the Kaldor-Hicks Criterion; however, it may not increase social welfare.
Analyze the balance-of-payment structure and make at least one recommendation for reducing errors and/or omissions. Explain your reasoning for making the recommendation you did.
Give the percentage change in the rental on capital and percentage change in wage and compare the magnitude of the percentage in the rental on capital with percentage change in wage in part (b). Use notational format.
Explain how market structure affects market performance and conduct. Identify three types of government regulation that help to improve market performance and conduct
State thes implified version of the problem in which the household chooses tomorrow's capital stock instead of today's investment .2 Given the Setup in 1.1, state the current value Lagrangian. .3 State the household's first-order conditions for cons..
Given the following payoff matrix, (a) What is the best (optimal) strategy for each firm? (b) Would firm A using the low price as a threat if firm B enters? (c) What could firm A do to make its threat credible without building excess capacity
For Profit Labs, Inc. (FPL) is a private laboratory that does only routine blood count. With total assets of $8 million last year, FPL took in $3 million in revenue and had expenses of $2 million. The average firms in other industries make a retur..
Apple recently launched the iPod nano under 2-different versions:2GB and 4GB. There are two types of customers of the iPod nano.
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