Describe the strategies and the payoffs

Assignment Help Microeconomics
Reference no: EM131612339

Question: Consider a game with two players who cannot communicate, and in which each player is asked a question. The players can answer honestly or lie. If both answer honestly, each receives $100. If one player answers honestly and the other lies, the liar receives $500 and the honest player gets nothing. If both lie, then each receives $50.

a. Describe the strategies and the payoffs.

b. Construct the payoff matrix.

c. What is the equilibrium of this game?

d. Compare this game to the prisoners' dilemma. Are the games similar or different? Explain.

Reference no: EM131612339

Questions Cloud

Discuss a social development theory : How does the video you selected support a social process theory or a social development theory
Three independent variables : Give an example of a proposition that contains at least three independent variables and at least five operations. Provide the truth table for that proposition.
Calculate the investment internal rate of return : The following information is available about an investment opportunity. Calculate the investment's internal rate of return and its NPV.
Relational database developers : Do you feel that relational database developers put more emphasis on user acceptance than they do on functionality of the database and the DBMS?
Describe the strategies and the payoffs : Consider a game with two players who cannot communicate, and in which each player is asked a question. The players can answer honestly or lie.
In-depth historical analysis of an organized crime group : in-depth historical analysis of an organized crime group, Select an organized crime group in the United States
What is value of shareholders equity account for firm : What is the value of the shareholders' equity account for this firm? How much is net working capital?
Explain the function and operation of cisco : Explain the function and operation of Cisco switch and router operating systems and their specific licensing, management, and operational recovery procedures.
Compute the gross margin percentage : You decide first to assess the company's performance in terms of debt management and profitability. compute The gross margin percentage

Reviews

Write a Review

Microeconomics Questions & Answers

  What is the real rate of return from the account

Suppose that the price level rises by 5% in a year. You have $1000 in a savings account at 3% interest rate. What is the real rate of return from the account?

  What fares should the airlines set

Suppose that the two airlines select their fares independently and "once and for all." (The airlines' fares cannot be changed.) What fares should the airlines set?

  What special problems does a central bank

What special problems does a central bank have to solve? Should Congress and the president be given greater authority over the Federal Reserve System?

  How much does demand change when the price changes

Price elasticity of demand refers to the percentage change in demand resulting from a percentage change in price. Please review the definition of relative inelasticity and relative elasticity. These terms refer to how much demand changes based on ..

  When the company is ready to make the purchase

An engineering firm wishes to purchase new computers and server to replace their aging equipment. They plan on purchasing the equipment in 3 years. The purchase price of the computers is be $2468 each today. The purchase price of the servers will be ..

  Steady state level of capital

Suppose that the rate of depreciation as well as the rate of saving are each .10. Also assume that there is no technological nor population growth.

  When does the law of diminishing marginal utility set in

Suppose that you observe that total utility rises as more of an item is consumed. What can you say for certain about marginal utility Can you say for sure that it is rising or falling or that it is positive or negative

  Cost of purchasing the chemical recovery system

A chemical recovery system costs $30,000 and saves $5,280 each year of its seven=year life. The salvage value is estimated at $7,500. The after-tax MARR is 9% and taxes are at 45%. What is the next after-tax annual benefit or cost of purchasing the c..

  Is it doomed to such a large cost disparity

It is estimated that a firm contemplating entering the breakfast cereal market would need to invest $ 100 million to build a minimum efficient scale production plant (or about $ 10 million annually on an amortized basis). Such a plant could produce a..

  Why the republican presidential nominee is more conservative

Use the median voter theorem to explain why the Republican presidential nominee is more conservative during the primaries than during the general election.

  Supply and demand schedule for pizza

Graph the supply and demand schedule for pizza using $5 through $15 as the value of p. In equilibrium, how many pizzas would be sold at what price?

  How does a consumer''s optimal choice of goods change

How does a consumer's optimal choice of goods change if all prices and the consumer's income double? (Hint: focus on the budget constraint. You don't have to, but you can use an example to support your answer).

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd