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Tarah is the principal in a firm. She can choose to work on Project 1 (P1) or Project 2 (P2). Having observed her principal's choice, and agent Nicky can choose to also work on either P1 or P2. Following this, the payoffs accrue to both parties. If they both chose to work on P1 the payoffs are (20, 10) for Tarah and Nicky, respectively. If both parties chose to work on P2, the payoffs are (15, 20). If one party decided to work on P1 and the other on P2, the payoffs are zero to each player.
a. Draw the extensive form of this game. What is the subgame perfect equilibrium?
b. Comment on the implications for the Coase theorem of this game.
The CEO of a chemicals firm must decide whether to develop a new process that has been suggested by the research division. His decision tree is shown in Figure.
What appears to be the major constraint that the central banks used to determine the limits of the monetary injections into the economy? Did the United States use the same or different criteria?
What did the Fed decide to do in March? What does the Fed expect to do over the next several months? Do you agree with the Fed's overall reasoning?
Discuss the likely effect of factors on Crude Tanker TCE per day in the next 2-3 years, and the implications for tanker operators.
Find a descriptive article (1 page or more) which deals with a current exchange rate issue.
A retail outlet is being designed in a strip mall in Nebraska. For this outlet, the installed fiberglass insulation to protect against heat loss in the winter.
Suppose there are two types of firms in an industry. All the firms within each type are the same. What is the aggregate MAC curve for the industry? If the MPD curve for the pollutant emitted by the industry is MPD=2.8E, what amount of tradeable perm..
Suppose that you have been hired to analyze the impact on employment from the imposition of a minimum wage in the labor market.
education is an example of a positive externality acquiring more education benefits the individual student and having
Describe how the GATT and WTO have helped to free international trade. Also, what has been the mechanism to accomplish that objective?
Use the Internet to research the economic crisis that struck Argentina in recent years. Identify as many potential contributing factors to the crisis.
Using the Federal Reserve's report (see link below) on Money Stock Measures for June 7, 2012 determine the growth rate of the Seasonally Adjusted M1 Money Supply between January 2011 and January 2012.
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