Calculate the value of delta , Macroeconomics

Assignment Help:

Consider the following prisoners' dilemma game.

 

 C

D

C

4,4

0,6

D

6,0

1,1

Suppose that this game is repeated innately and consider the following Tit-for-tat" strategy:

Choose C in period 1 and then do whatever your opponent did last period".

(a) For what values of δ, if any, both players choosing the \Tit-for-tat" strategy is a SPE?

Consider now the \Pavlov" strategy: \Choose C in period 1. Choose C after any history in which the outcome in the last period is either (C;C) or (D;D). Choose D after any other history."

(b) For what values of δ, if any, both players choosing the \Pavlov" strategy is a SPE?

 


Related Discussions:- Calculate the value of delta

Obtain a histogram of systolic blood pressure, The data set lowbwt.sav co...

The data set lowbwt.sav contains information for a sample of 100 low birth weight infants born in two teaching hospitals in Boston. Measurements of systolic blood pressure are sa

How internal resources important, Why is it important to study the internal...

Why is it important to study the internal resources, capabilities, and activities of firms? What insights can be gained?

calculate the marginal revenue of demand graph, Gas Guzzler Motors is one ...

Gas Guzzler Motors is one of three major auto producers. It is currently producing 6,000 cars a day, and selling them at a price of $10,000 each. Its marketing department tells it

Describe effects of hours spent studying, Design a hypothetical ideal rando...

Design a hypothetical ideal randomized controlled experiment to study the effects of hours spent studying on performance on microeconomics exams. Suggest some impediments to implem

Illustrate an example of consumer price index, Illustrate an example of Con...

Illustrate an example of Consumer Price Index For instance, if we spend twice as much on apples as on pears, apples would have twice the weight in basket. The precise details o

Marginal tax rates imposed on individuals, Compared with the situation befo...

Compared with the situation before 1981, the marginal tax rates imposed on individuals and families with high incomes are now lower. What was the top marginal personal income tax r

What do you mean by gross domestic product, What do you mean by Gross Domes...

What do you mean by Gross Domestic Product? Gross Domestic Product: GDP stands for Gross domestic product, measures the value of all concluding goods and services produce

Tariff reform - trade liberalisation under wto, Tariff Reform: India's...

Tariff Reform: India's customs tariff rates have been declining since 1991. The "peak"  rate came down from 150 percent in 1991-92 to  40 percent  in 1997-98. The downward mom

Define exchange rate systems, Q. Define Exchange rate systems? Differen...

Q. Define Exchange rate systems? Different nations have different exchange rate systems. The most significant characteristic of an exchange rate system is to what degree the co

Write Your Message!

Captcha
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