Consider game where two players take turns deciding whether

Assignment Help Business Economics
Reference no: EM131174163

Consider a game where two players take turns deciding whether or not to take a pile of money. At the start of the game, there are two piles of money, one "large" pile with 5 dollars and one "small" pile with 1 dollar. Player 1 gets to choose whether to take the large pile, or leave both piles alone.

- If player 1 takes the large pile, he receives 5 dollars as his payoff, and player 2 receives the small pile, 1 dollar, as his payoff, and the game ends.

- If player 1 leaves both piles alone, both the large and the small piles double (10 dollars, and 2 dollars, respectively)

- Player 2 then decides whether to take the large pile of leave both piles alone.

- Every time a player leaves both piles alone, both piles double in size.

- Players take turns deciding whether to take the large pile or leave the piles alone until each player has had three oppourtunites to take the large pile (six rounds total).

- If, at the end of the game, neither play has taken the large pile, player 1 is awarded the large pile (which will contain 320 dollars at this point) and player 2 is awarded the small pile (which will contain 64 dollars).

1. Label the best response at every stage of the game. What will the outcome of this game be?

Reference no: EM131174163

Questions Cloud

Comparing ifrs to gaap paper : Write a summary of discussion regarding IFRS versus. GAAP.- Include an introduction and a conclusion.- The summary should be structured in a subject-by-subject format.
Compare counter-terrorism and weapons of mass destruction : Compare and contrast the counter-terrorism and weapons of mass destruction capabilities of a large municipal police agency with that of your local jurisdiction.
Discuss six critical mission areas of the national strategy : Discuss the six critical mission areas of the National Strategy for Homeland Security in the context of "all hazards" planning.
What would happen if earth magnetic field flipped : Did it surprise you to know how much our magnetic field protects us? How do you think life on Earth would be affected if magnetic field weakened significantly? Have you heard anything in scientific news recently about Earth's magnetic field? Wh..
Consider game where two players take turns deciding whether : Consider a game where two players take turns deciding whether or not to take a pile of money. At the start of the game, there are two piles of money, one "large" pile with 5 dollars and one "small" pile with 1 dollar. Player 1 gets to choose whether ..
Write the paper assignment : Write the Paper Assignment. - The topic is "Pediatric Obesity". - Give some ideas how to start the Paper.
Determine the required wing area : Determine the required wing area for a 1350-kg airplane to cruise at 125 km/h if the airfoil is set at an angle of attack of 2.5°. The airfoil has the characteristics shown in Fig. 17.11. The cruise altitude is 5000 m in the standard atmosphere.
Analyze and assess one amendment to the us constitution : Excluding the Bill of Rights (the first ten amendments), analyze and assess one amendment to the US Constitution. Choose from amendments 11-27.
What are equilibrium price-quantity-profits for monopolist : Consider a situation where a monopolist faces the following inverse demand curve p = 240 - 2q and constant marginal costs of MC = 40. Suppose that a regulator imposed a price ceiling on te monopolist of p = MC = 40. What are the equilibrium price, qu..

Reviews

Write a Review

 

Business Economics Questions & Answers

  Qbased on market research a recording company obtains the

q.based on market research a recording company obtains the following information about the demand and production costs

  Federal express offers two kinds of overnight delivery

Federal Express offers two kinds of overnight delivery. There is priority overnight, which is guaranteed to reach its destination by 10:30 A.M. the next day, and standard overnight, which is guaranteed to be delivered by 3 P.M. the next day. Priority..

  Q1 what are the definitions of the following cost concepts

q.1 what are the definitions of the following cost concepts fixed costs variable costs and total cost?2. give the

  Floating exchange rates floating exchange rates contributed

The common currency in Europe was created because (a) governments had come to the conclusion that the system of floating exchange rates floating exchange rates contributed to continuous trade imbalances, or because (b) they believed that a common cur..

  Countrys political-economic environment and risk

What is the relationship between a country’s political/economic environment and risk? What about corruption? Please provide examples to support your post!

  Perfectly competitive firm will seek out quantity of output

In the ________, if profits are not possible, the perfectly competitive firm will seek out the quantity of output where ________.

  Focused on online retail and services

We focused on online retail and services this week. Why were so many entrepreneurs initially drawn to start businesses in the online retail sector?

  Explain increase in quantity of defense goods

explain increase in quantity of defense goods when there is an increase in marginal benefit.

  Test the hypothesis

Suppose you want to test the hypothesis that higher income taxes make people work fewer hours per year on average. The tax rate is your independent variable and hours worked per year is your dependent variable and you want to use each individual coun..

  Discuss the impact of the minimum wage

Discuss the impact of the minimum wage when there are two sectors in the economy, one is subjected to the minimum wage and the other is not.

  Explain how that differs from a womens movement

The women’s movement of the 1960s was part of a long effort by women fighting for equality since the late 1700s and continuing through today. The women’s movement is now more correctly envisioned as a gender movement Describe what a gender movement i..

  What are the differences in the available products

Compare an $80,000 median family income in 1980 to the same income in 1990, 2000, and 2010. What are the differences in the available products? What are the differences in the quality of those products? Considering this, in which of those years would..

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