Reference no: EM133064176
Consider the following two player sequential game. Player 1 moves first and can choose either option Left or option Right. If he chooses option Left, then Player 2 moves. Player 2 can choose option A or option B. If player 2 chooses A, then the game ends and player 1 gets 340 whereas player 2 gets 114. If player 2 chooses B, then the game ends and both the players get 0. Conversely, in the first stage if player 1 chooses option Right, then it is again the turn for player 2. Player 2 can choose option A or option B. If Player 2 chooses option A, then the game ends and player 1 gets 400 whereas player 2 gets 150. Finally, if Player 2 chooses option B, then the game ends and player 1 gets 26 whereas player 2 gets 148.
a) What would it look like if expressing this as a normal form game and presenting in a table?
b) If finding all the pure strategy Nash equilibria, how to explain?
c) What would it look like if expressing this as an extensive form game and showing the sub-games?
d) What is the sub-game perfect Nash equilibrium here?
e) Why is there a difference in the answers in (b) and (d)?
f) What do we think will happen when this game is played by human subjects in an experiment? How to explain our answer with the knowledge of behavioral game theory?
|
Relationship between human capital and economic growth
: What are the predictions of economic theory regarding the relationship between human capital and economic growth? What other key factors affect economic growth?
|
|
Prepare journal entries for miliani retaliated
: Seida reported income of $331,000 and declared and paid dividends of $102,000. Prepare journal entries for Miliani retaliated to its investment in Sida
|
|
What are the firm short-run profits
: A firm sells its product in a perfectly competitive market where other firms charge a price of $110 per unit. The firm estimates its total costs as ??(??) = 70
|
|
Account the psychological biases
: There are certain times when the demand for Uber rides increases (bad weather, rush hour, special events, etc.). Uber uses "surge pricing" as a way of charging
|
|
What is the sub-game perfect nash equilibrium
: Consider the following two player sequential game. Player 1 moves first and can choose either option Left or option Right. If he chooses option Left, then Playe
|
|
How much franchise revenue should the franchisor record
: Siomai Queen sells franchises for an initial fee of P100,000. How much franchise revenue should the franchisor record on March 15, 2019
|
|
What should be the equivalent production under fifo
: With the beginning work in process consisting of 5,000 units, 1/5 done, what should be the equivalent production under FIFO
|
|
What is mental accounting
: In a practical money management context, what is mental accounting? How is it applied to investment selection?
|
|
Question on the fed and monetary policy
: Monetary policy is the action taken by the Federal Reserve to expand or contract the money supply and influence interest rates.
|