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1. For each of the games listed below, draw out the extensive form (game tree) of the game. Assume each decision node is a full information node, or that the player knows what decisions were made before them. For each game identify all subgames, and all subgame perfect equilibria (SPE). You can make up your own numbers for all games unless otherwise indicated. Explain if there is a first-mover advantage or a second-mover advantage in each game
a. Two-shot Prisoners Dilemma (i.e., playing Prisoners Dilemma two times in a row.)
b. Two-shot chicken (note the game ends if the players crash in the first round.)
c. One-shot Hawk-Dove with variables V and C. Make sure to check for changes to SPE's based on different values of V and C.
d. One-shot matching pennies.
Is there a stigma attached to automatic stabilizers and are they what are sometimes referred to, often derogatorily, as "entitlements"?
Dizzyland Amusement Park is a monopoly that charges for ride tickets. There is no fence around the park and anyone can walk in. Dizzyland is considering building a fence so that they can charge admission. If the fence can be built for free, does it i..
The rate of economic progress in a country seems to depend on the extent to which the country has a well-functioning market economy in which property rights are protected. Discuss the relationship between property rights, corruption, and economic pro..
You have purchased a machine costing $30000. The machine will be used for 2 years, and at the end of this time, its salvage value is expected to be $18000. The machine will be used for 6,000 hours during the first year and 8000 during the second year..
Using the IS-LM diagram, Show the impact of a gontxaetionary monetary policy for a country that maintains: (a) a target interest rate (b) a target money supply
GE’s mission statement reads: “GE imagines things others don’t, builds things others can’t and delivers outcomes that make the world work better. GE brings together the physical and digital worlds in ways no other company can. What are some of the cr..
Complete the following table by indicating whether an event will cause a movement along the demand curve for donuts or a shift of the demand curve for donuts, holding all else constant.
The major disadvantages of using ARIMA to derive a forecast include, Requires a lot of time series observations
If you deposit $10,000 with Bank South for one year, how much additional interest will you receive?
If the price elasticity of demand for a product is 1 in absolute value, and the price elasticity of supply of the same product is 1, what is the predicted percent change in price from a 1 percent increase in demand?
Approximately what is the current level of U.S. national debt? You can express your answer as a percent of RGDP. Which one, – a federal budget deficit or a national debt – is a heavier burden on the U.S. economy than the other? Why?
Thinking about how Disney has connected with their customers over the years, discuss one reason why you think they have been able to accomplish this.
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