Draw a table representing sequential game

Assignment Help Business Economics
Reference no: EM132505354

Two firms are in the chocolate market. Each can choose to go for the high end of the market (high quality) or the low end (low quality).

Resulting profits are given by the following table:

Firm 1 / Firm 2 Low High

Low -20,-30 900,600

High 100,800 50,50

a. Consider the simultaneous game where Firm 1 (the row player) and Firm 2 (the column player) decide on the quality at the same time. Using the Method 1 (the intersection of best responses), find out the Nash equilibria, if any.

b. Draw a game tree representing this simultaneous game given in section a.

c. Next consider a variation of this game. Suppose Firm 1 is the leader, he decides first on the quality. Then, the Firm 2 decides on the quality knowing the decision of Firm1. Draw the game three of this sequential game. Find the Subgame Perfect Nash Equilibrium of this game by backward induction method.

d. Draw a table representing this sequential game given in section c.

Reference no: EM132505354

Questions Cloud

ITECH7406 Business Intelligence and Data Warehousing : ITECH7406 Business Intelligence and Data Warehousing Assignment Help and Solution - Federation University, Australia - Individual Analytic Report
Describe samanthas money habits : Should Samantha be worried about her credit score since she is still in college? Use three adjectives to describe Samantha's money habits.
Calculating current net income and net income : Check your answer by calculating current net income and net income with a 20% increase. PinPoint's EBIT is this year is $20,000. They paid $16,000 in interest
Record the sale of the cake on may : The cake cost a total of $15,000. Stephanie is going to pay the balance owed in June 2019. Record the sale of the cake on May 31st.
Draw a table representing sequential game : Two firms are in the chocolate market. Each can choose to go for the high end of the market (high quality) or the low end (low quality).
Record wages for the last day of may that have not been paid : Sunny pays every week on Friday. May 31st was a Wednesday. Record the wages for the last days of May that have not been paid.
Explain and apply accounting techniques : Explore how financial information is provided and in what form for management decision making and explain and apply accounting techniques
Calculate the new monetary base : A. If the required reserve ratio is 15 percent, currency in circulation is $400 billion, checkable deposits are $1000 billion, and excess reserves total $1 bill
Calculate and record the interest owes for the months : Calculate and record the interest that she owes for the months of January through May. She will not pay it until December 31st, 2020.

Reviews

Write a Review

Business Economics Questions & Answers

  Measure of monopoly power

What extent do you agree or disagree that profits should be used as the measure of monopoly power?

  What is the final goal of marketing activities

What is the final goal of marketing activities, and what are the four things you need to know to define a market?

  Assumption of a normal distribution of data

Inferential statistics frequently depend on the assumption of a normal distribution of data. Based on your experiences with grade point averages

  Bureau of labor statistics employed category

Who of the following is not in the Bureau of Labor Statistics' "employed" category?

  What about tweedledee

Tweedledum and Tweedledee live along the Gulf Coast, where there is a risk of hurricanes but insurance providing either full or partial coverage is available at its actuarially fair price. Tweedledum is risk averse, whereas Tweedledee is risk seeking..

  Making a normal profit or an economic profit

Calculate firm A's Total Revenue, Total Cost, and its profit for year 1. Is firm A making a Normal profit or an Economic profit?

  What is the wage rate and employment level under monopsony

Consider a monopsonist in the labor market. Let the labor supply be given by L = 4w, where L is the employment level, and w is the wage rate. Suppose that the monopsonist has the production function F(L) = √ L.  What is the wage rate and employment l..

  What experience do you have with assessments

What experience do you have with assessments? Which form of assessments do you consider most helpful in evaluating the learning status of learners?

  African-americans and others of african descent

How is it that certain groups in the United States never given the opportunity to “assimilate”? Include the following groups in your analysis: Hispanics, African-Americans and others of African descent, Native-Americans, and Asian-Americans.

  Cash flows of the three independent projects

It is considering investments in three different technologies. Consider the following cash flows of the three independent projects.

  Distributed systems perspective of our case study

Please discuss how the distributed systems perspective of our case study of the Internet from class match up to the tenants of transparency.

  Copyright owners of the materials is on you tube

you agree with the argument which the copyright owners of the materials mentioned should not be paid a fee if their material is on YouTube.

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