Find the nash equilibria, Macroeconomics

Assignment Help:

Two people are engaged in a joint project. If each person i puts in the effort xi, the outcome of the project is worth f(x1, x2). Each person's effort level xi is a number between [0,1], and effort costs c(xi). The worth of the project is split equally between the two people, regardless of their effort levels, so the net payoff of each player is

f(x1, x2)/2 - c(xi).

Draw the players Best Responses, and find the Nash equilibria when

(i) f(x1, x2) = 3x1x2 and c(xi) = xi

2, for i = 1, 2.

(ii) f(x1, x2) = 4x1x2 and c(xi) = xi, for i = 1, 2.

Provide a brief interpretation in each case.

 


Related Discussions:- Find the nash equilibria

Nine patients are selected at random, A recent study in NJ showed that 50% ...

A recent study in NJ showed that 50% of all patients will return to the same dentist. Suppose nine patients are selected at random, what is the probability that: (a) exactly five o

Additional marginal opportunity costs of our choices, We have been looking ...

We have been looking at just the Additional Marginal Opportunity Costs of our choices. What about the total cost? For example, we see and hear ads all the time about different cell

Describe nominal and real interest rates, Q. Describe Nominal and real inte...

Q. Describe Nominal and real interest rates? To distinguish real interest rate from the ‘normal' interest rate, latter is termed as the nominal interest rate. Nominal interest

Initial equilibrium position, Determine on any market the effect of the fol...

Determine on any market the effect of the following. Do each separately (on a separate graph) starting from an initial equilibrium position for each one. 1. increase in income

Private sector in the circular flow, Private sector in the circular flow ...

Private sector in the circular flow The private sector total income is known as the national income. Because private sector receives the entire return from the factors of pr

Welfare economic, Evaluate the Bergson social welfare functions

Evaluate the Bergson social welfare functions

Considered opportunity costs, Gasoline, insurance, depreciation, and repair...

Gasoline, insurance, depreciation, and repairs are all costs of owning a car. Which of these can be considered opportunity costs in the context of each of the following decisions?

Describe the keynes motivation, Q. Describe the Keynes motivation? Key...

Q. Describe the Keynes motivation? Keynes' motivation: In good times, when Y is high (above its trend), national income is high (above it trend). Consumers will take this opp

Influence the losing price bubble, What happened to the credit standards (e...

What happened to the credit standards (e.g., minimum down payment, mortgage loan relative to the value of the house, and creditworthiness of the borrower) between 1995 and 2005? Wh

Describe about consumption function, Q. Describe about consumption function...

Q. Describe about consumption function? The consumption function Consumption C(r) is assumed to be negatively related to the real interest rate r

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