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It is possible to reconfigure the payoffs in the game in Exercise so that the children's statement in their ad is a threat, rather than a promise.
(a) Redraw the tree from Exercise 6a and fill in payoffs for both players so that the kids' statement becomes a threat in the full technical sense.
(b) Define the status quo in your game, and determine whether the threat is deterrent or compellent.
(c) Explain why the threatened action is not automatically credible, given your payoff structure.
(d) Explain why the implied promise is automatically credible.
(e) Explain why the kids would want to make a threat in the first place, and suggest a way in which they might make their threatened action credible.
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Assume that the relationship between the growth of a fish population and the population size can be expressed as g = 2P - 0.1P, where g is the growth in tons and P is the size of the population (in thousands of tons).
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List the strategies available to each player in the game - Find all Nash Equilibrium and find all pure and mixed strategy Nash Equilibriums
Identify which player can benefit from making a strategic move, identify the natu re of the strategic move appropriate for this purpose.
A hat contains three coins - one gold, one silver and one copper. You will select coins one at a time without replacement until you choose the gold coin. The outcome of interest is the sequence of coins that are selected during this process.
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