Find the backward induction equilibrium, Applied Statistics

Assignment Help:

A rightist incumbent (player I) and a leftist challenger (player C) run for senate. Each candidate chooses among two possible political platforms: Left or Right. The rules of the game are the following:

- If both choose the same platform, the incumbent wins the election and if they choose di erent platforms the challenger wins the election.

- The payo for winning the election is 2 and the payo of losing is 0 for each candidate.

- Moreover, candidates do not like to compromise their views. Therefore, independently of whether they win or not, they get an extra payo of 1 (that is, on top of the 0 or 2 mentioned above) if they propose the platform they like best.

(a) Draw the tree if:

(a-1) The Incumbent moves rst

(a-2) The Challenger moves rst

(a-3) The Incumbent and the Challenger move simultaneously

(b) Find the Backward induction equilibrium in cases (a-1) and (a-2) and the (pure and/or mixed strategy) Nash equilibria in case (a-3). Find the payo s of each candidate in each case.

(c) Interpret the results (important).


Related Discussions:- Find the backward induction equilibrium

Determine best estimates of the population mean and variance, Question: ...

Question: (a) A normal distribution is thought to have a mean of 50. A random sample of 100 gave a mean of 52.6 and a standard deviation of 14.5. A significance test was carri

Graphical calculation for mode, For calculating the mode of the grouped dat...

For calculating the mode of the grouped data graphically, the following procedure is adopted. Draw a histogram of the data; the modal class is the tallest rectangle.

Population variance, Examining the Population Variance Business decisio...

Examining the Population Variance Business decision making does not limit itself to setting up the hypothesis to test for the equality of more than two means or proportions sim

Data project, Dr. Jim Mirabella UNIT EIGHT: DATA ANALYSIS PROJECT All Excel...

Dr. Jim Mirabella UNIT EIGHT: DATA ANALYSIS PROJECT All Excel output should be copied into a single Word document where you must enter all of your responses to the questions below.

Determine the lower and upper fences, To study the physical fitness of a sa...

To study the physical fitness of a sample of 28 people, the data below was collected representing the  number of sit-ups that a person could do in one minute.      10    12

Simulation, Simulation When decisions are to be taken under conditions ...

Simulation When decisions are to be taken under conditions of uncertainty, simulation can be used. Simulation as a quantitative method requires the setting up of a mathematical

Skewness, Skewness Meaning and Definition  Literal meaning of skew...

Skewness Meaning and Definition  Literal meaning of skewness is lack of symmetry; it is a numerical measure which reveals asymmetry of a statistical series. According t

Regression analysis, Meaning and Definitions of Regression The dictiona...

Meaning and Definitions of Regression The dictionary meaning of regression is just opposite the meaning of progression. Progression means to move forward while regression means

Pattie-lynns utility function, Pattie-Lynn's utility function for total as...

Pattie-Lynn's utility function for total assets is, in which A represents total assets in thousands of dollars. (a) Graph Pattie-Lynn's utility function. How would y

Descriptive statistics, Explanation of descriptive statistics Describe ...

Explanation of descriptive statistics Describe what these descriptive statistics show or what recommendations you would create to AIU.  What information do you now have as a re

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