Two-person prisoner dilemma

Assignment Help Business Economics
Reference no: EM132337205

In studying for an final exam, a male student is concerned about two things: his grade and the amount of time he spends studying. A good grade will give him a benefit of 20; an average grade, a benefit of 5; and a poor grade, a benefit of 0. By studying a lot, he will incur a cost of 10; by studying a little, a cost of 6. Moreover, if he studies a lot and all other students study a little, he will get a good grade and they will get poor ones. But if they study a lot and he studies a little, they will get good grades and he will get a poor one. Finally, if he and all other students study the same amount of time, everyone will get average grades. Other students share Sam's preferences regarding grades and study time.

a. Model this situation as a two-person prisoner's dilemma in which the strategies are to study a little and to study a lot, and the players are the male student and all other students. Include the payoffs in the matrix.

Reference no: EM132337205

Questions Cloud

Approach to crafting and executing strategy : What benefits will an organization derive from a more focused approach to crafting and executing strategy?
What is the change in profit according to gap analysis : If there is an increase in interest rates of 5%, what is the change in profit according to Gap analysis. (Use negative numbers if there is a loss.)
Eliminating playoffs and just crowning regular season : Some owners have recommended eliminating the playoffs and just crowning the regular season leader as the league champion. Why might this be a bad idea?
Purchase a new piece of technology : How would you react to a physician who wants the organization to purchase a new piece of technology that the competing hospital
Two-person prisoner dilemma : Model this situation as a two-person prisoner's dilemma in which the strategies are to study a little and to study a lot, and the players are the male student
Enforcement of antitrust laws : If the government, and through the enforcement of antitrust laws, believes the presence of competition in the marketplace achieves the highest level
What have they done to differentiate commodities : In other words, what have they done to differentiate their commodities (or themselves), reduce their costs, and/or differentiate their method of delivery?
Profit-maximising firms offering employees wages : Explain why incomplete contracts regarding effort may lead to profit-maximising firms offering employees wages above their reservation wage.
Employees wages above reservation wage : Explain why incomplete contracts regarding effort may lead to profit-maximising firms offering employees wages above their reservation wage.

Reviews

Write a Review

Business Economics Questions & Answers

  Supply incentive effects of an increase

Explain the labor supply incentive effects of an increase in the hourly wage of an individual currently working for wage income.

  Find out sally optimal consumption of diet coke

Suppose the price of a can of Diet Pepsi is $1. Find out Sally's optimal consumption of Diet Coke as a function of the unit price of Diet Coke (PC).

  Trial upper control limit

With showing your work in details, determine the requested information for acontrol chart for count of non-conformities.Trial center line. Trial upper control limit.

  Fiscal policy actions will result in the greatest increase

Which of the following fiscal policy actions will result in the greatest increase in Real GDP?

  The case study of wages and productivity

The case study of wages and productivity in the textbook demonstrates that:

  Strategic considerations involved in economic relationships

It is often said that democracies will not go to war with one another. Do you think this is true? So, what impact do economic systems have on world peace? What are some strategic considerations involved in economic relationships with other countries?

  What is the standard deviation of npv for each of projects

Your company asked you to evaluate two potential projects. These projects are active for 10 years and have no salvage life. Both have the same upfront costs, but the revenue stream from each of the projects is subject to variation, so risk is involve..

  Marginal costs-average total costs

A watch manufacturer finds that at 1,000 units of output, its marginal costs are below average total costs. If it produces an additional watch, will its average total costs rise, fall, or stay the same?

  Q1 mckee corporation has annual fixed costs of 12m its

q1. mckee corporation has annual fixed costs of 12m. its variable cost ration is .60.a. determine the companys break

  Short-term interest rate to keep the economy

Adjust this key short-term interest rate to keep the economy on track.

  Critically analyse governments fiscal and monetary policy

HI5003 Economics for Business - HOLMES INSTITUTE - Examine a broad understanding of the principles of macro and micro economics in a variety of business

  The prices of the two goods remain unchanged

Angela consumes only two goods, x and y. Her income doubles and the prices of the two goods remain unchanged. Assuming that she is a utility maximizer and likes both goods,

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