Obtaining higher average payoff

Assignment Help Macroeconomics
Reference no: EM1316712

Assume the 3 firms compete for market share over an infinite time horizon.  Each firm takes the present value of 1 dollar tomorrow to be X dollars today, where 0 < X < 1.  Show that there is an equilibrium where all three of the firms can collude with each other and obtain a higher average payoff over time than either one of them could individually in the game.

Reference no: EM1316712

Questions Cloud

Determining expected shape of distribution of sample mean : Determine the expected shape of distribution of sample mean? Compute the likelihood of choosing a sample with mean of at least $112,000?
Computation of required return and project irr : Computation of required return and Project IRR and The capital budgeting director of Sparrow Corporation is evaluating a project that costs
Find the cost of the shortest length of carpet : Find the cost of the shortest length of carpet.
Game between two firms in stackelberg duopoly : Assume two firms, A and B, serve a market with demand D(p) = 100 - p.  Assume that (i) they have identical cost functions, c(Q) = 5Q,
Obtaining higher average payoff : Assume the 3 firms compete for market share over an infinite time horizon.  Each firm takes the present value of 1 dollar tomorrow to be X dollars today, where 0
What is the probability that your mean flight : Assume that flight times from SAN to ATL are exponentially distributed with a mean of 4.5 hours and a standard deviation of 0.2 hours. Assume that you must fly from SAN to ATL weekly for the lucrative consulting engagement for one year (52 flight..
Determining percent confidence interval for population mean : Find out a 95 percent confidence interval for population mean.
Sampling distribution of the mean : The 95% confidence interval for the mean of the sampling distribution of the mean is about:
Computation of security market line : Computation of Security Market Line (SML) of stocks and its analysis and Assume a U.S. Treasury rate of 3% as the risk free rate in your SML

Reviews

Write a Review

Macroeconomics Questions & Answers

  Determine real rate of interest

Short term Treasury bills [3 and 6 month] have current annual rates of interest around 0.5%. Use that info plus your best forecast of inflation to calculate the real rate of interest on those bills.

  What will be the effect of change in policy

What will be the effect of this change in policy on both the real and the nominal interest rate in the long - run?

  Determination of production function

You have been hired as a plant manager for a firm that produces widgets (Q) in Angola, Indiana. Widget production requires machine time (K) and labor time (L).

  Export and import shift due to changes in tastes

The Heckscher-Ohlin model assumes that tastes are the same in Home and Foreign. Suppose now that tastes are different in Home and Foreign.

  Give explanation of changes in labor market

Suppose that in the market for comic book illustrators the substitution effect dominates the income effect While visiting Comic Con.

  Evaluate total revenue-marginal revenue-total cost

Compute total revenue, marginal revenue, total cost and profit at each quantity.  What quantity would a profit-maximizing publisher choose? What price would it charge?

  Average cost schedule for perfectly competitive firm

Suppose that a firm is a perfectly competitive industry has the following total cost schedule: Compute a marginal cost and average cost schedule for this firm.

  Impact of deflation on forex rates

Assume the US economy experiences deflation. Trace through the impact on the US macroeconomic variables to the effect on the FOREX rates.

  Questions on fiscal policy and monetary policy

If the reserve ratio is 15 percent and commercial bankers decide to hold additional excess reserves equal to 5 percent of any newly acquired checkable deposits, then the relevant monetary multiplier for the banking system will be:

  Explanation for human development indicator

Discuss briefly what you think the way in which the HDI is constructed. (Briefly means no more than five lines of text. Excesses are severely penalised.)

  Calculate unemployment rates-number of employed

Compute the employment rate (i.e., number employed: population) in each year? How can employment rate may go up or down in the unemployment rate stays the same? How can employment rate go up if unemployment rate also goes up?

  Items of calculation of gnp

Which of the following items are included in the calculation of GNP in the UK, and which are excluded?

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