None Exercise 4.11 Find the subgame-perfect equilibria of the game shown in Figure 4.25,assuming the following about the players' preferences. Both Amy and Bill are selfishand greedy, are interested in their own net gain, Amy values the object at $5 and Bill at$4.$2Amy$3Bill$2$3$2$3AmyAmyAmyPass$4 Pass$4 Pass$6 Pass$6BillAmy BillAmy AmyAmy BillAmywinswins winswins winswins winswinspayspays payspays payspays pays$2pays$4$3$4$3$6$3$6Figure 4.25: The game of Exercise 4.11

We can give the following utilities to the results based on the preferences of the players in table…

Answered: Exercise 4.11 Find the subgame-perfect…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 10 Which of the following startements about network externalities is CORRECT? Air pollution is an example of a network externality. For a good with network externalities, the number of people who are willing to buy a unit of the good is uniquely determined by the price. Network externalities are always positive. The manufacturer of a new good with network externalities might give away a free version of the good. For a good with network externalities, one person's valuation of the good is always increasing in the number of other people using the good.
You are in the market for a new couch and havefound two advertisements for the kind of couchyou want to buy. One seller notes in her ad that sheis selling because she is moving to a smaller apartment, and the couch won’t fit in the new space.The other seller says he is selling because the couchdoesn’t match his other furniture. Which seller doyou expect to buy from? Why? ( Hint: Think whowould be the more motivated seller.)
‘‘Risk-averse people should only be averse to big gambles with a lot of money at stake. They should jump on any small gamble that is unfair in their favor.’’ Explain why this statement makes sense. Use a utility of income graph like Figure 4.1 to illustrate the statement. For a challenge, demonstrate the statement using a two-state graph like Figure 4.6.
3. Anthony loves going to the opera while Becky loves watching football. The following diagram shows the payoffs for their choice of activity. For example, if Anthony chooses opera and Becky chooses football, then the activities are valued at £10 to Anthony and £20 to Becky, respectively. Assume that they can only choose one activity each. Based on this information, determine whether each of the following statements is true or false. Becky Opera Football Opera 80, 10 0,0 Football 10, 20 20, 40 Anthony (a) There are two Nash equilibria: (Opera, Opera) and (Football, Football). (b) If Anthony announces that he will choose Opera and sticks to it, then (Opera, Opera) will be chosen. (c) If Anthony offers £20 to Becky for coming to the opera with him, then (Opera, Opera) may be chosen. (d) If Anthony offers £50 to Becky for coming to the opera with him, then (Opera, Opera) will definitely be chosen.
Sean is arguing with his girlfriend, Yvette. They have been going out for a little more than two years. YVETTE: I'm leaving you, Sean. Get over it. SEAN: Are you saying that being single will make you happier than you've been with me? Speaking personally, I think the utility we've had in this relationship was much more than you could have had if you'd been single this whole time! YVETTE: I had taken an economics class and the word "utility" rings a bell. It's not that at all. We've had a fine time. It's that the utility I would get by continuing our relationship isn't worth it anymore. SEAN: I've never been dumped by someone citing the law of before. You're a piece of work, you know that? Yvette doesn't hear. She has already walked off, leaving Sean feeling like something of a sunk cost.
1. Alizeh and Kelly were traveling together and have gotten stranded at an airport overnight. They have no cash, but they did both think to bring granola bars and turkey sandwiches with them. They currently each have several granola bars and a few sandwiches. Alizeh announces that she'd be willing to give up a granola bar for one turkey sandwich. Kelly responds that turkey sandwiches are bigger than granola bars so she would be willing to give up a granola bar if she could get half a turkey sandwich. Is Kelly and Alizeh's current allocation of granola bars and turkey sandwiches efficient? Explain why or why not. (Note that you cannot rely on a rule here – you have to specifically explain why the allocation does or does not meet the definition of an efficient allocation.)
Donuts are a big thing in Portland, OR. You go into one of the many donut establishments to purchase some number of these tasty (and even vegan or gluten free if required) treats. Let's say that the first donut has higher utility for you, so you are willing to pay up to $2 for it. For the second donut you are willing to pay $1.50, the third $1, a fourth $0.50 and the fifth $0.00. This particular bakery in Portland charges an average of $1 per donut. If you are a rational buyer (which can be hard when faced with so many different delicious donuts) then how many donuts do you purchase, and how much consumer surplus (i.e., money saved compared to what you were willing to spend) do you have? O 4 donuts, $5 O 2 donuts, $5 O 3 donuts, $1.50 O 1 donut, $0.50
There are two shows on Netflix that Jeff can watch, Show 1 and Show 2. x₁ measures the number of episodes watched of Show 1 and x₂ measures the number of episodes watched of Show 2. Jeff's preferences can be represented by u(x₁, x₂) = x² + ax². Jeff has 5 hours available for watching Netflix today. Each episode of Show 1 lasts 30 minutes, while each episode of Show 2 lasts one hour. For all question parts, round to three decimal places if necessary. For parts (a) - (f), let a = 1. Draw Jeff's indifference curves for the utility levels u = 4, 9, 16. Draw a straight line between the bundles (x₁, x₂) = (4,0) and (x₁, x₂) = (0,4). Now, use your picture to determine whether the following two statements are true or false. Answer "1" for true. Answer "0" for false. a) Statement 1: Jeff's preferences are strongly monotone. b) Statement 2: Jeff's preferences are strictly convex. c) Find the bundle at which one of Jeff's indifference curves is tangent to the budget line. (x₁, x₂)=( d) Evaluate…
There are two shows on Netflix that Jeff can watch, Show 1 and Show 2. x₁ measures the number of episodes watched of Show 1 and x2 measures the number of episodes watched of Show 2. Jeff's preferences can be represented by u(x₁, x₂) = x² + ax². Jeff has 5 hours available for watching Netflix today. Each episode of Show 1 lasts 30 minutes, while each episode of Show 2 lasts one hour. For all question parts, round to three decimal places if necessary.
Sub : EconomicsPls answer very fast.I ll upvote. Thank You In each of the following games, how many pure strategies (complete plans of action) are available to each player? List all of the pure strategies for each player.
Case No. 1 Emma likes to call her friend regularly during the month, but he lives abroad. A call costs him $5/minute. The psychological benefit (measured in dollars) of the first 100 minutes of call is $10/minute, that of the next 100 minutes, $5/minute, that of the next 100 minutes, $2.5/minute and finally, that of the next 100 minutes, also $2.5/minute. A) If Emma calls her friend 100 minutes a month, does she make a net gain? B) What is the number of call minutes per month that maximizes Emma's satisfaction? C) If we use Emma's monetary measure of satisfaction, what is the amount of her satisfaction? D) What should be the price per minute of a call for Emma to be at the maximum satisfaction by choosing to call 400 minutes per month?
The New York Subway Bakery is famous for selling large "black and white cookies." The top of each cookie has one-half chocolate icing and one-half vanilla icing. Mario, the baker, bakes at night after the customers leave. Mario wants to bake two hundred fifty black and white cookies. Mario has thirteen pounds of sugar. there are approximately eleven cups of sugar in a pound. Mario needs three cups of sugar for each batch of black and white cookies. Each batch of cookies dough makes five large black and white cookies. Does Mario have enough sugar to bake two hundred fifty black and white cookies? How many whole batches of black and white cookies can Mario bake? Mario has five dozen cookie boxes. Each cookie box holds four black and white cookies. How many cookies boxes does Mario use to package the black and white cookies he bakes? Between what two whole numbers are the total black and white cookies boxes Mario uses? Mario charges twenty-seven dollars and eighty-five cents per box of…

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