Draw this game in matrix form and extensive form

Assignment Help Microeconomics
Reference no: EM13695970

Consider a father who is trying to discipline his child. The father insists that the child must go with the rest of the family to visit their grandmother. The child prefers to go to the movies with a friend. The father threatens to punish the child if the child doesn't visit the grandmother. If the child goes with the family to visit the grandmother, both the child and the father receive one unit of utility. If the child refuses to go to the grandmother’s house, and the father punishes the child, the child receives negative unit one unit of utility, and the father receives negative one unit of utility. If the child refuses to go and the father relents (does not punish), the child receives two units of utility, and the father receives none.

a. Draw this game in matrix form.

b. Draw this game in extensive form (game tree).

c. Solve this game via backward induction.

Please show work

Reference no: EM13695970

Questions Cloud

A policy of maintaining a fixed interest : A policy of maintaining a fixed interest rate will have the greatest stabilizing effect on output when money demand is
A policy of maintaining a fixed interest rate : A policy of maintaining a fixed interest rate will have the greatest stabilizing effect on output when money demand is
Exactly the same purpose–housing tenants : Why might a local resident be willing to pay more for an apartment complex in your hometown than might an investor from out-of-the-country who would use it for exactly the same purpose – housing tenants?
Common feature of home construction constricts : A common feature of home construction constricts is that when it costs more to construct a building than was originally estimated. The constrictor must absorb the additional cost. Explain in no more than three sentence how this feature reduces the pr..
Draw this game in matrix form and extensive form : Consider a father who is trying to discipline his child. The father insists that the child must go with the rest of the family to visit their grandmother. The child prefers to go to the movies with a friend. The father threatens to punish the child i..
Government engage in to increase consumption : The economy has been suffering through a recession for over a year and the government is desperate for solutions. Elections are coming up and the current administration is in danger of being replaced if something isn’t done to stimulate the economy f..
Obtaining only a normal profit in the long run : "If an unregulated monopolist is obtaining only a normal profit in the long run, it must not be operating at the lowest point on its long-run average cost curve." Do you agree? Why?
Now calculate the unregulated monopolistic outcome : A firm’s Marginal Revenue curve (in class we called this also Marginal Value) is given by w=1200-2L, where w stands for the wage and L for the quantity of labor. The labor supply curve is given as w=L.
Monopolistic competition-oligopoly are market structures : Both monopolistic competition and oligopoly are market structures

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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