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(Subgame perfect equilibrium of chain-store game) Consider the following strategy pair in the game for K = 100. For k = 1,... , 90, challenger k stays out after any history in which every previous challenger that entered was fought (or no challenger entered), and otherwise enters; challengers 91 through 100 enter. The chain-store fights every challenger up to challenger 90 that enters after a history in which it fought every challenger that entered (or no challenger entered), acquiesces to any of these challengers that enters after any other history, and acquiesces to challengers 91 through 100 regardless of the history. Find the players' payoffs in this strategy pair. Show that the strategy pair is not a subgame perfect equilibrium: find a player who can increase her payoff in some subgame. How much can the deviant increase its payoff?
question from the given payroll matrix where the payoff refer to profit that firm a and b earn from their possible
Construct a 3x3 game in which there are two Nash equilibria in pure strategies and the vector of payoffs in both is "worse" than some other vector of payoffs in the game.
A manufacturer of a new, less expensive type of light bulb claims that this product is very well made and even more reliable than the higher priced competitive light bulbs.
Burger Doodle is a fast-food restaurant that processes an average of 680 food orders each day. The average cost of each order is $6.15. Four percent of the orders are incorrect, and only 10% of the defective orders can be corrected
An instructor claims the average time to take a statistics test is more than 39 minutes. If a sample of 33 students took 43 minutes, is the instructor's claim true? Test at the 0.05 level.
Use the tree from part a to argue that this statement consti tutes a promise. What would the outcome of the game be if the promise works?
In order to answer the following questions, first draw a density curve describing this distribution. Pay attention to the height of the curve!
Little Kona is a small coffee corporation that is planning entering a market dominated through Big Brew. Each corporation's profit depends on whether Little Kona enters and whether Big Brew sets a high price or a low price.
Test the hypothesis that random variable 30.4 31.2 30.8 29.9 30.4 30.7 29.9 30.1 come from a normal distribution with mean 30.5. The standard deviation of the measurements is known to be 0.1
There is 0.02% probability that a credit card holder of a company reports the loss or theft of the credit card each month. The company has 15,000 credit cards in Memphis. Use the Poisson distribution to answer the following questions.
The national average for a new car loan is 8.28%. If the rates are normally distributed with a standard deviation of 3.5%, find the probability one can receive a rate less than 9%
How many female offspring does a normal organism produce? How many male offspring? Use your answers to ?nd the number of grandchildren born to each mutant and to each normal organism.
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