Game in the extensive form

Assignment Help Microeconomics
Reference no: EM13833860

Suppose Andy and Brian play a guessing game. There are two slips of paper, one is black and the other is white. Each player has one of the slips of paper pinned to his back. Neither of the players observes which of the two slips is pinned to his own back. (Assume that nature puts the black slip on each player's back with probability ½.). The players are arranged so that Andy can see the slip on Brain's back, but Brain sees neither his own slip nor Andy's slip.

After nature's decision, the player interacts as follows. First, Andy chooses between Y and N, if he selects Y, then the game ends, in this case. Brain gets a payoff of 0, and Andy obtains 10 if Andy obtains 0. If Brains chooses Y and the white slip is on his back, then he gets - 10 and andy gets 0. If brain chooses N, then both players obtain 0.

a. Represent this game in the extensive form.

b. Draw the Bayesian normal-form matrix of this game.

Reference no: EM13833860

Questions Cloud

Instead investors registered to participate in the auction : On August 19, 2004, the Internet search firm Google went public, at an offer price of $85 per share. The IPO was unconventional in that Google used an auction to determine its offer price and sell shares to investors. In this respect, underwriters di..
Who makes the drearnliner : Boeing and these firms make decisions and pay their workers, investors, and raw material suppliers to influence what, how, and for whom goods and services are produced. All these decisions are made in self-interest, and produce an airplane at the ..
The firm''s required return : ABC Company's last dividend was $1.3.  The dividend growth rate is expected to be constant at 7% for 3 years, after which dividends are expected to grow at a rate of 4% forever.  The firm's required return (rs) is 15%.  What is its current stock pric..
Role of the commonwealth constitution : 1. What has been the role of the Commonwealth Constitution in setting the framework for regulation of transport and communications?
Game in the extensive form : a. Represent this game in the extensive form. b. Draw the Bayesian normal-form matrix of this game.
Similarities among adjustment and acute stress disorder : What are the differences and similarities among adjustment disorder, acute stress disorder, and PTSD? In your discussion, specify commonalities and differences among the causes of each
Explain use of dependent independent and mediating variables : What is independent variable and dependent variable relationship? What is independent variable and mediating variable relationship? Explain the use of dependent, independent and mediating variables in quantitative studies.
Explain a static budget could end up being very misleading : When it comes to evaluating performance, a static budget could end up being very misleading. Since a flexible budget is based on sales volume and cost driver activity, it tends to be more accurate when assessing performance.
Limitations of drug therapy : The benefits of drug therapy are proclaimed in magazines and on television commercials, but there are some disadvantages, too. Discuss, in detail, the five limitations of drug therapy

Reviews

Write a Review

Microeconomics Questions & Answers

  The company is producing too much

Sal Pizza Shop has a unique recipe for pizza, and currently its optimal price is $20 per pizza at a quantity of 200 pizzas per week. Its marginal cost is $12 per pizza when it produces fewer than 180 pizzas per week. The marginal cost is $15 per pizz..

  If porters demand for accommodation is based on religion

Porter seeks accommodation for a religious practice unique to the Heavenly Masters. Porter's employer has never heard of this religion. In order to determine whether Porter's demand for accommodation is truly based on religion, the employer must d..

  What can be the value of using forecasting

What can be the value of using forecasting? How could you use forecasting in your industry or company in a way that's not currently being done? What decisions could be impacted as a result?

  Calculate profit and make decisions about short-run profit

Given a numeric production schedule, you will calculate profit and make decisions about short-run profitability to answer questions relating to your calculations. Jerry's Lock Shop is a perfectly competitive firm, and Jerry is operating at his lev..

  Use graphical method and numerical method to find whether

each month the u.s. bureau of labor statistics publishes a variety of unemployment statistics including the number of

  Explain monopolists output decision-equimarginal principle

Explain the equimarginal principle. Describe and explain a monopolist’s output decision. Explain why a price-fixing cartel is difficult to maintain. Put in plain words the concepts of adverse-selection and moral hazard. Explain the consequences of a ..

  How much do these transactions contribute to gdp

Elly is a teacher. Her mom gets really sick in January 2009, therefore she quits her job as a teacher and cares for her mother full time. But in January 2010 the government introduces a new scheme under which elly can get full time care for her mothe..

  How perfect competition leads to allocative productive

Explain with the use of diagrams where appropriate how perfect competition leads to allocative productive and dynamic efficiency.

  Who is part of the economic system

Two of the major macroeconomic measures that tell us how 'healthy' the economy is are "the unemployment Rate" and "the rate of Inflation". How do they matter to you as an individual who is part of this economic system

  Competitors did not follow increase which non-collusive

in march 2002 american airlines implicitly increased the price for low-priced business tickets. competitors did not

  When indifference curves are bowed inward

When indifference curves are bowed inward, the marginal rate of substitution is

  Comparison of u.s. economy with other economies

What was the level of inflation during the time period relative to the history of inflation in the United States? What were the driving factors behind this trend?

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