Write down the payoff matrix and find all nash equilibria

Assignment Help Econometrics

Reference no: EM13241626

One unit of object is going to be sold via auction. There are two bidders, A and B. Their willingness to pay are known to be either of 10,20,30,40,50 and bids are also restricted to those values. Suppose A's WTP is 20 and B's is 40. Ties are broken by coin flip and assume they are risk neutral.

(1) Consider the first price auction. Write down the payoff matrix and find all Nash equilibria.
(2) Consider the second price auction. Write down the payoff matrix and find dominant strategy equilibrium.

Reference no: EM13241626

Questions Cloud

By how much is it higher or lower than it was before : Suppose that a car dealership wishes to see if efficiency wages will help improve its salespeople's productivity. Currently, each salesperson sells an average of one car per day while being paid $20 per hour for an eight-hour day.

You survey a sample of 10 college students to measure their : You survey a sample of 10 college students to measure their racial prejudice using a scale of 0 (no prejudice) to 100 (extreme prejudice). Here are the scores you obtained.

Explain element in water combine to form a single chemical : A common reaction is when two polyatomic ions or compounds of the same element in water combine to form a single chemical with an intermediate oxidation state - this called a comportionation reaction.

How does technology enable netflix to process : As a retail distributor, what value (different types of utility) does Netflix add for customers? Be sure to include examples from the written case study and the video in your response.

Write down the payoff matrix and find all nash equilibria : One unit of object is going to be sold via auction. There are two bidders, A and B. Their willingness to pay are known to be either of 10,20,30,40,50 and bids are also restricted to those values.

When we have several criteria with different scale for rank : When we have several criteria with different scale, for ranking can we add values after standardization? for exaample for ranking websites we have number of visitors and page load time and size and.

Can anyone explain age so individuals in a certain : Can anyone explain? Age so individuals in a certain population are normally distributed with a mean of 55 and standard deviation of 10 years. What age reange would make up the youngest 5% of the population?

What is the cost or benefit to society of the externality : If the company keeps its levels of L and K the same, what is the change in the number of fish caught If the fish catch is worth $0.80/fish to society, what is the cost or benefit to society of the externality in monetary terms

The accrual method of accounting : In the Month of March, Chester Corporation received orders of 170 units at a price of $15.00 for their product Cedar. Chester uses the accrual method of accounting and offers 30 day credit terms.

User Account

All Pages