Determine the nash equilibrium

Assignment Help Business Economics

Reference no: EM131253081

There are d democrats and r republicans voting in the US Presidential election. Each person decides whether to vote or not vote. The voters get a payoff of 2,1,0 if their preferred candidate wins, ties, or loses (respectively). Voters that vote incur a cost of 0 < c < 1 (which leads to respective payoffs of 2-c, 1-c,-c c). a) Suppose that d = r = 1. Write out the normal form game table, tell what game this is, and determine the Nash equilibrium. b) Now Suppose d = r > 1, find the set of Nash equilibria. Hints: Is there any NE in which everyone votes? Is there any NE in which there is a tie and not everyone votes? Is there any NE in which one of the candidates wins by one vote? Is there any NE in which one of the candidates wins by 2 or more votes? c) Now Suppose d < r, find the set of Nash equilibria.

Reference no: EM131253081

Questions Cloud

Textbooks measured along the horizontal axis : Smith is given a voucher that can be spent only on textbooks. Smith has a budget constraint with textbooks measured along the horizontal axis and everything else on the vertical axis. Suppose everything else is comprised only of normal goods. Then:

Defined as-better defender and better three-point shooter : Assume ESPN introduces a new performance comparison system for NBA players (basketball), i.e. preference relation for ranking players as strictly better, weakly better or indifferent (equally good). ESPN’s new criterion (the preference relation) is d..

Market for pencils is competitive-originally in equilibrium : Assume the market for pencils is competitive and originally in equilibrium. As a result of an increase in the price of graphite, the supply of pencils decreases. What is true of the new equilibrium?

Determining the production schedule that minimizes cost : A small computer manufacturing company forecasts the demand over the next n months to be di i = 1 2n. In any month it can produce r units, using regular production, at a cost of b dollars per unit. By using overtime, it can produce additional units a..

Determine the nash equilibrium : There are d democrats and r republicans voting in the US Presidential election. Each person decides whether to vote or not vote. The voters get a payoff of 2,1,0 if their preferred candidate wins, ties, or loses (respectively). Voters that vote incur..

Should the firm make the investment : A firm is considering an investment that will earn a 6% rate of return. If it were to borrow the money, it would have to pay 8% interest on the loan, but it currently has the cash, so it will not need to borrow. Should the firm make the investment? ..

Consider the business cycle and its four phases : Can the bad actually be good? Consider the business cycle and its four phases. Often times we anguish over the recessionary part of the cycle – there is increasing unemployment, bankruptcies, incomes and profits are dropping, production declining, et..

How firm can use economic calculation but bureaucracy cannot : Describe how Hayek believed markets would coordinate actions. Explain how firm can use economic calculation but a bureaucracy cannot? Explain why. Also explain why resources will be allocated to their highest value use even though each company is onl..

Make an argument in favor of tom bearing the risk of loss : Consider the following: Tom owns an automotive parts store for specialty vehicles in New York, New York. Pete, who lives in Newark, Delaware, owns a specialty vehicle and is in the market to buy a muffler. Pete calls Tom and tells Tom that he has 196..

User Account

All Pages