Draw the new tree and find the rollback equilibrium

Assignment Help Business Management
Reference no: EM132407264

Two distinct proposals, A and B, are being debated in Washington. Congress likes proposal A, and the president likes proposal B. The proposals are not mutually exclusive; either or both or neither may become law. There are four possible outcomes, and the rankings of the two sides are as follows, where a larger number represents a more favored outcome:

Outcome Congress President

A becomes law 4 1

B becomes law 1 4

Both A & B become law 3 3

Neither (status quo prevails) 2 2

The moves in the game are as follows. First, Congress decides whether to pass a bill and whether the bill is to contain A and B or both. Then the president decides whether to sign or veto the bill. Congress does not have enough votes to override a veto. 

Now suppose the rules of the game are changed in only one respect: the president is given an extra power of a line-item veto. Thus, if Congress passes a bill containing both A and B, the president may choose not only to sign or veto the bill as a whole, but also to veto just one of the two items. Draw the new tree and find the rollback equilibrium.

What is/are the rollback equilibrium/equilibria?

Reference no: EM132407264

Questions Cloud

Find out the cournot equilibrium : A) Find out the Cournot equilibrium and calculate each firm's profit.
Purpose of discussion about water charges : For the purpose of this discussion about water charges, water is billed monthly based on the actual amount of water used the prior month
Compute the present value of the benefits : Assuming that the benefit of this investment in measured by the post-graduation earning streams, compute the present value of the benefits using the same.
Define information and knowledge portals : Define Information and Knowledge Portals. Then define Knowledge Retention and Enterprise Content Management.
Draw the new tree and find the rollback equilibrium : Now suppose the rules of the game are changed in only one respect: the president is given an extra power of a line-item veto.
Assuming that elizabeth is a rational : Assuming that Elizabeth is a rational, utility maximizer, derive the demand for good x when her income is $1,000 and the price of good y is held constant at py
What are the prices of good x and y : If the supply of goods x and y on Homothetica totals 50,000 units and 200,000 units, respectively, will there be any excess demand or excess supply
Emerging technologies and practices in next-generation data : Emerging technologies and practices in next-generation data analytics include blockchain, digital strategy, and Artificial Intelligence.
DBS201 Introduction to Database Design and SQL Assignment : DBS201 Introduction to Database Design and SQL - Database Application Development Assignment Help and Solution, Seneca College, Canada. Create a HR application

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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