Find mixed-strategy nash equilibrium

Assignment Help Microeconomics

Reference no: EM13699549

Suppose that your parents are deciding where to hide your (insert non-offensive, not religiously affiliated holiday here) presents while you’re trying to decide where to look for them. The payoff to your parents from successfully hiding your presents is 7 while their payoff from you finding them is 1. Your payoff from successfully finding your presents is 10 and your payoff from not finding them is 3. Your parents are considering hiding the presents in one of three places: under the bed, in the closet, or under the floor boards. They have left the house, but only briefly, so you must decide where to look with your limited time. If you look in the same place that your parents have hidden the presents you find them. If not, not.

(a) Suppose that you have two pure strategies: you can either look under the bed and in the closet (since those don’t take too long) or you can pry up the floor boards and look under them (that’s harder so it takes longer). Find mixed-strategy Nash equilibrium for this game if it is possible.

(b) Now suppose that you have three options. You can look under the bed and in the closet, you can look under the bed and under the floor boards or you can look in the closet and under the floor boards. Once again, find a mixed-strategy Nash equilibrium if one exists.

Reference no: EM13699549

Questions Cloud

Describe the concept of derived demand : Describe the concept of derived demand. Discuss the link between derived demand and unemployment by providing an example from our economy.

Write out a regression with quarter dummies : Write out a regression with quarter dummies (use summation notation to be compact). How is this same as a time fixed effects regression? Write out a regression equation with a variable “time,” which takes on the value 1 at the beginning of the sample..

Inward shift in the demand curve for new autos : The demand in Japan for new automobiles is elastic and sensitive to market prices. Given that, describe the effect of each of the following on the quantity demanded or the demand for new autos in Japan.

What tax revenue-what is the deadweight loss associated : Suppose that there are 100 workers in the country (50 women and 50 men), they are each paid $10 an hour, and the tax rate is 25%. What tax revenue is collected? What is the deadweight loss associated with the 25% tax on labor incomes?

Find mixed-strategy nash equilibrium : Suppose that your parents are deciding where to hide your (insert non-offensive, not religiously affiliated holiday here) presents while you’re trying to decide where to look for them. The payoff to your parents from successfully hiding your presents..

Leadership and business integration requirements : Review the resources listed in the books and resources area below to prepare for this weeks assignments and complete the following spotlight on skills if you need assistance with the tools used to complete your assignments.

Workers before-tax wage and tax rate : In which L is the number of hours a worker chooses to work (we assume that the worker is able to choose his or her own hours of work), w is the worker’s before-tax wage, and t is the (linear) tax rate. Suppose that there are 100 workers in the countr..

Comprehensive strategic marketing plan : A comprehensive strategic marketing plan for introduction of a new product - Low alcoholic beverage (beer)into the US market.

Will taxes on labor income reduce or increase labor supply : James is a 35-year-old economic consultant who eagerly anticipates the day he will retire from his job and move to a lovely, but expensive, vacation spot, complete with beachfront property and a yacht. James gets income from labor income and investme..

User Account

All Pages