Find all competitive equilibrium prices

Assignment Help Microeconomics

Reference no: EM131021577

1. There are three agents A. B. C and two items X.Y in an assignment problem. The agents' values are given in the following table.

	X	Y
A	6.3	4.2
B	3.1	4.8
C	5.4	2.3

(a) Find all competitive equilibrium prices.

(b) What is the outcome of the ascending clock auction(formal version), assuming a sincere bidding behavior?

2. There are two firms f 1. fo and two workers ail. zr2 seeking to match in one-to-one fashion. The monetary values accruing to each party from a match is described in the next table. The first element indicates the value accruing to the firm and second element indicates the value accruing to the worker:

	ω1	ω2
f1	(50,-20)	(60,-20)
f2	(30,-25)	(50,-30)

(a) Suppose there are (only) two salary levels 29 and 32 at which a firm and a worker can match. Assume that each firm's utility is given by the value of a worker hired minus a salary paid to that worker, and each worker's utility is given by the salary minus the cost (i.e., plus the value) of working for a firm. List the preference order for each party (i.e., the two workers and two firms) of alternatives in terms of (a match partner, salary). Find the outcome of the workers proposing deferred acceptance algorithm and that of the firms proposing deferred acceptance algorithm.

(b) Suppose now the feasible salary levels are 29. 32, and 40. Repeat the same exercise as (a).

Reference no: EM131021577

Questions Cloud

Calculate the return if the bank compounds annually : Calculate the return (A) if the bank compounds annually (n = 1). Round your answer to the hundredth's place. Calculate the return (A) if the bank compounds quarterly (n = 4). Round your answer to the hundredth's place.

Assess the revenue-expense-profitability-liquidity-activity : Ratio analysis. Exhibit 4-21 lists the financial ratios for 227-bed Hollywood Community Hospital. Assess the revenue, expense, profitability, liquidity, activity, and capital statement of Hollywood for 20X1. Explain why these financial measures chang..

Identify and describe the global market forces : Identify and describe the global market forces, risks, development chain, supply chain, and strategies from one of the following perspectives.

Compare and contrast compensation plans : Given the current regulatory environment for financial institutions, analyzing financial statement information is an important process and at the same time, the massive amount of information that creditors have to sort through can become unwieldy.

Find all competitive equilibrium prices : There are three agents A. B. C and two items X.Y in an assignment problem. The agents' values are given in the following table. What is the outcome of the ascending clock auction(formal version), assuming a sincere bidding behavior?

Find the measures of the angles if a pair of interior angles : Find the measures of the angles if a pair of interior angles on the same side of the transversal have measures such that one angle is 4 times the measure of the other.

Is it easier or harder to file fraudulent taxes : With your experience in this course, what do you see as the most difficult components for individual preparers to understand about filing taxes?

Develop research and analytical skills : Develop research and analytical skills, applied to understanding the role of managers and their impact on organisations.

Account starts at the initial margin requirement : You’ve borrowed $20,000 on margin to buy shares in Disney, which is now selling at $50 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%. Two days later, the stock price falls to $48 per share. a. ..

User Account

All Pages