Reference no: EM131332325
Alternating Offers game Debby and Barack are jointly conducting a project that will pay them a total payoff of $100. Every delay in implementing the project reduces payment for completing the project. How should they divide this money between them?
The two decide to implement the following procedure: Debby starts by offering a division (xD, 100 - xD), where xD is a number in [0, 100] representing the amount of money that Debby receives under the terms of this offer, while Barack receives 100 - xD. Barack may accept or reject Debby's offer.
If he rejects the offer, he may propose a counteroffer (yD, 99 - yD) where yD is a number in [0, 99] representing the amount of money that Debby receives under the terms of this offer, while Barack receives 99 - yD. Barack's offer can only divide $99 between the two players, because the delay caused by his rejection of Debby's offer has reduced the payment for completing the project by $1. Debby may accept or reject Barack's offer.
If she rejects the offer, she may then propose yet another counteroffer, and so on. Each additional round of offers, however, reduces the amount of money available by $1: if the two players come to an agreement on a division after the kth offer has been passed between them, then they can divide only (101 - k) dollars between them. If the two players cannot come to any agreement, after 100 rounds of alternating offers, they drop plans to conduct the project jointly, and each receives 0.
Describe this situation as an extensive-form game, and find all of its subgame perfect equilibria.
Write a reflection paper on social change
: Reflection Paper on Social Change - Choose one of the three options.Look up the Dada and Surrealist movements (early 1900s art movements)a) Determine if they constitute a social movement by referring to the 5 criteria I discussed in class and explain..
|
Find nash equilibrium thats not subgame perfect equilibrium
: Find a Nash equilibrium that is not a subgame perfect equilibrium, and explain why it fails to be a subgame perfect equilibrium.
|
What is the weighted average cost of capital
: The black bird company plans an expansion to be financed by selling $190 million in new debut and $121 million in new common stock. The before-tax required rate of return on debut is 6.21% and the required rate of return on equity is 14.84%. If th..
|
Requires an initial fixed asset investment
: Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.58 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be w..
|
Describe given situation as an extensive form game
: Alternating Offers game Debby and Barack are jointly conducting a project that will pay them a total payoff of $100. - Describe given situation as an extensive-form game, and find all of its subgame perfect equilibria.
|
Write a summary of chapter-violence-sex and politics
: Write a Summary of chapter.Create 10 reading comprehension questions covering the entire chapter.Include answers to your reading comprehension questions.Include at least 5 important terms, definitions, etc. that you think are important.Find at least ..
|
Crypton cost of capital
: Common stock of the firm is currently selling for $29.01 per share and the firm expects to pay a $2.16 dividend next year. Dividends have grown at the rate of 4.8% per year and are expected to continue to do so for the foreseeable future. What is ..
|
Percent and the second coupon
: A newly issued 10 year bond is valued at par on June 1, 2017. The bond has an annual coupon of 8.0 percent. On June 1 2020, the bond has a yield to maturity of 7.1 percent. The first coupon is invested at 8.0 percent and the second coupon is reinv..
|
Low number using both xnpv and ebitda multiples
: Whole foods market DCF analysis, I'm getting a very low number using both XNPV and EBITDA Multiples. Could the stock just be that over valued. I even went crazy and gave them a 12% Growth rate for 10 years and 4 percent for the terminal value, and on..
|