User Account

All Pages

What is the nash equilibrium

Assignment Help Microeconomics
Reference no: EM132542105

The 100-meter Olympic gold medalist and the 200-meter Olympic gold medalist have agreed to a 150-meter duel. Before the race, each athlete decides whether to improve his performance by taking anabolic steroids. Each athlete's payoff is 20 from winning the race, 10 from tying, and 0 from losing. Furthermore, each athlete's utility of taking steroids is -6. Model this scenario as a game in which the players simultaneously decide whether to take steroids.

a) What is the Nash equilibrium? Is the game a prisoners' dilemma? Explain.

b) Suppose that one athlete's utility of taking steroids is -12, while the other's remains at -6. What is the Nash equilibrium? Is the game a prisoners' dilemma? Explain.

Reference no: EM132542105

Questions Cloud

What had learned from the group assignment : Reflections on what you had learned from the group assignment. What insights had you gained and what had you learned from this experience?
Marginal revenue equals marginal costs : If the short-run marginal costs of producing a good are $40 for the first 200 units and $50 for each additional unit beyond 200, then in the short run
What did not go to plan and what had learnt : Reflections on your experience as a group member in the group assignment. What went well, what did not go to plan and what had you learnt from it?
Assessing the capacity of data visualisation : Assessing the ability of data analytics and model creating and Assessing the capacity of data visualisation and result in communication
What is the nash equilibrium : What is the Nash equilibrium? Is the game a prisoners' dilemma? Explain.
Compute the margin of safety in dollars and as a ratio : Assuming actual sales are $2 million, compute the margin of safety in (1) dollars and (2) as a ratio. Provide data input and formula used in creating
What do if were wayne terrago : Wayne Terrago controller,Who are the stakeholders? What ethical issues involved in this situation? What do you do if you were Wayne Terrago?
Why is direct labor a poor base for allocating : How can the activity rates (that is, cost per activity) for various activities used to target process improvements? Why is direct labor poor base for allocating
Who are the intended users : Who are the intended users and what are their informational? What are the major differences between managerial accounting and financial accounting?

Reviews

Write a Review

Microeconomics Questions & Answers

  What output of milk maximizes profits

If the cheese and milk markets are perfectly competitive, what output of milk maximizes profits?

  What are younger people willing to support financially

What are younger people willing to support financially? What role might pharmaceutical products have in managing age-related issues?

  Develop a paper detailing an analysis of market structures

Develop a paper detailing an analysis of market structures and relating pricing strategies that are suitable for each of these structures. Furthermore, include a real world example of pricing strategy for a specific U.S. company by identifying its..

  Product of labor equation is an important equation

The Value of the Marginal Product of Labor Equation is an important equation. Setting aside political considerations, there has been quite a bit of discussion regarding the pay level for fast food restaurants. In two paragraphs, please discuss the ch..

  Explain how and why firms practice 3rd degree price

Explain how and why firms practice 3rd degree price discrimination. Use the handout to illustrate your answer (coupons; airlines, mobile phones).

  According to the solow growth theory

According to the Solow growth theory that we have studied, how would each of the following events affect per capita consumption in the long-run. Illustrate graphically and explain.

  Describe the export income

Does it make sense for any country to have a majority of its export income derived from one or two exports, that is, to be a mono-exporter? Why, or why not?

  Find nash equilibrium using the payouts

Suppose Agon moves first and DuPal responds. Draw the game tree and find Nash Equilibrium using the payouts described in the profit table above.

  Imperfect information and asymmetric information

Explain how asymmetric information creates problems in the market. Describe the possible solutions to the problems.

  Identify the four major tools of monetary policy

Identify the four major tools of monetary policy. b) Describe how changes in the Fed’s major policy tools lead to [1] expansionary and [2] restrictive or contraction monetary policies. Define the four basic types of trade barriers. b) Who gains and w..

  Explain money and banking

In each case, do you think the household is better of f or worse off, or is the answer ambiguous? If ambiguous, what does the answer depend on?

  Question on pricing and output decisions

Indicate whether each of the following statements is true or false and explain why. a) A competitive firm that is incurring a loss should immediately cease operations.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd