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Consider the Rubinstein bargaining model of dividing $1 between A and B. A makes the first offer. If B accepts the offer then game ends. If B rejects the offer then B makes an offer to A in the next day. Suppose the bargaining game lasts for 4 days. If the final offer is rejected by A on day 4, they both go home with nothing. Assume A discounts future payoffs at rate α per day, and B discounts future payoffs at rate β per day. Solve the sub game perfect equilibrium payoffs to each player.
An oil and gas company is considering whether to begin drilling a new oil field. The company will need to pay $5 million as an initial investment in order to extract the oil. The company will operate the field for a total of 5 years, during which its..
Your company has a customer who is shutting down a production line, and it is your responsibility to dispose of the extrusion machine. The company could keep it in inventory for possible future product and estimates that the reservation value is $250..
Proviade two examples of actions taken by a company, government, or organization whose effect is to prevent specific markets from reaching equilibrium.
Illustrate what is the practical significance of income elasticity coefficients. Explain the significance using as examples an income elasticity.
A union is trying to form in a company that you are working at. When the union representatives come to you to pitch the union, they extol the uniqueness of their system, where you receive the benefits of collective bargaining, but if there comes a ti..
q.refer to the baseball 2010 data which reports information on the 30 major league baseball teams for the 2010 season.
Sally deposited $100 a month in her savings account for 24 months. For the next five years she made no deposits. What is the future worth in Sally's account at the end of seven years if the account earned 6% interest annually, compounded monthly?
the supply of paper is given by the following equationqs 5000p where qs is tons supplied per year and p is price ton.
Do you think bonus depreciation is too generous to the business community or is it necessary to continue to stimulate the economy?
Elucidate how would you express the demand for clothing also footwear. Risks involved holds the most risk to the subcontractor.
q.some economists have suggested that the best way to control medical costs is to remove the profit incentive for
select a new good or service for an existing business or a business that you want to develop. write a 2500- to
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