Discover the nash equilibrium or equilibrium of this game

Assignment Help Microeconomics
Reference no: EM13687727

In a two-player one shot simultaneous move game, each player can choose strategy A or strategy B. If both players choose strategy A, each player earns a payoff of $400. If both players choose strategy B, each player earns a payoff of $200. If player 1 chooses strategy A and player 2 chooses strategy B then player 1 earns $100 and player 2 earns $600. If player 1 chooses strategy B and player 2 chooses strategy A then player 1 earns $600 and player 2 earns $100.

1. Write the above game in normal form.

2. Discover each player's dominant strategy, if it exists.

3. Discover the Nash equilibrium or equilibrium of this game.

4. Rank strategy pairs by aggregate payoff (highest to lowest).

5. Can the outcome with the highest aggregate payoff be sustained in equilibrium? Why or why not?

Reference no: EM13687727

Questions Cloud

What is the rms voltage output of the generator : A 460-loop circular armature coil with a diameter of 9.0 cm rotates at 190rev/s in a uniform magnetic field of strength 0.55T. What is the rms voltage output of the generator
Use the klein model to show that in the hyperbolic plane : Use the Klein model to show that in the hyperbolic plane
Define modern economic growth : Define "modern economic growth" and describe the institutional structures needed for an economy to experience it. Identify the general supply, demand, and efficiency forces that give rise to economic growth. Explain "growth accounting" and the specif..
Determine how much power is dissipated in a resistor : An AC generator supplies 150 V peak voltages at 250 Hz frequency. How much power is dissipated in a resistor with R = 135 Ohm resistance connected to the generator
Discover the nash equilibrium or equilibrium of this game : In a two-player one shot simultaneous move game, each player can choose strategy A or strategy B. If both players choose strategy A, each player earns a payoff of $400. If both players choose strategy B, each player earns a payoff of $200.
Find the charge-to-mass ratio of the particle : A charged particle moves through a velocity selector at a constant speed in a straight line. Find the charge-to-mass ratio of the particle
Find the angular momentum of the particle : A small particle of mass 0.225kg is moving on a circle of radius 2m. Find the angular momentum of the particle when its speed is 8m/s
Explain an experience that you have had working on a team : Explain an experience that you have had working on a team. As a part of your response discuss how the team was evaluated. Also discuss whether or not the free-rider problem existed on your team. If it did exist also discuss how/if the problem was add..
Find the angular momentum of the particle : A small particle of mass 0.225kg is moving on a circle of radius 2m. Find the angular momentum of the particle when its speed is 8m/s

Reviews

Write a Review

Microeconomics Questions & Answers

  Determining cartels-profit maximizing outputs

Compute the profit maximizing output produced by each firm. Compute the profits earned by each firm and the cartel.

  The absolute value of the elasticity of demand

Suppose that the market for gnomes is yet to reach equilibrium, and that the current price and quantity in the market for gnomes.

  Marketing research in target market for lower price point

What difference does it make, if any, if technology is moving very fast in the market so that this game proves to be one-time-only simultaneous play?

  What are the growth rates of potential gdp in the country

Country A and Country B have identical population growth rates of 1 percent per annum, and everyone in each country always works 40 hours per week. Labor productivity grows at a rate of 2 percent in Country A and a rate

  Panther airlines pa is the only airline that flies several

panther airlines pa is the only airline that flies several routes. they have a potential competitor leopard airlines la

  How would you go about ensuring practice of the expeditor

in many countries expeditors can help you cut through layers of bureaucracy so that you can get your business done or

  How does the elasticity of supply and demand affect price

If the price ceiling were removed, what would happen to the price of gasoline in the near term Is it fair that the available gasoline would only go to those people who are willing and able to pay the higher price

  A consummer has a revenue of i dollars the prices of x and

a consummer has a revenue of i dollars. the prices of x and y are px and py. the utility function of the consummer is

  What number of drivers appears to be most efficient

What number of drivers appears to be most efficient in terms of output per driver and what number of drivers appears to minimize the marginal cost of transportation assuming that all drivers are paid the same salary?

  The next three years and by 140 percent in fourth year

your finance text book sold 56500 copies in its first year. the publishing company expects the sales to grow at a rate

  17 assume a certain firm in a competitive market is

17. assume a certain firm in a competitive market is producing q 1000 units of output. at q 1000 the firms marginal

  Oligopoly market

My term paper will be about oligopoly market where the market in oligopoly situation is dominated by few number of sellers and would lead to a higher prices for consumers for the product or service they are getting.

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