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Consider this natural extension of stripped down poker game we examined in class. Initially each player puts a dollar in the pot. Then each player is dealt; each player’s card is equally likely to be high or low, independently of the other player’s card. Each player sees only her own card. Player 1 may see or raise. If she sees, then the players compare their cards. The one with the higher card wins the pot. If the cards are the same, then each player takes back the dollar dollar she had put in the pot. If player 1 raises, then she adds $2 to the pot, and player 2 may pass or meet. If player 2 passes, then player 1 takes the money in the pot. If player meets, then she adds $2 to the pot and the players compare cards, the one with the higher card winning the pot; if the cards are the same, then each player takes back the $3 she had put in the pot. Model this game as an extensive game and find the Perfect BNE in mixed strategy.
Illustrate what an identification and discussion of economic issues of special concern at the present time or in the future.
What is your monthly interest rate and what is your annual effective interest rate? If you have an outstanding balance of $1,800 on that card what would be the balance if you skipped 4 months payments (ignore credit card fees and penalties)
What claim does an employer have on a person's feeling, rights, and privacy? and what rights can an employer justified ably limit in the workplace?
All the big computer manufacturers have little "Intel Inside" logos in their television advertisement.
What are the characteristics of perfect competition? Why does this type of fast-food restaurant tend to display characteristics of perfect competition? Imagine you are running a firm with the characteristics of a perfectly competitive firm. Describe ..
Pretentious that yields for each stock are around generally distributed, with which investment strategy do you have the smallest chance of losing money?
Two identical small poor countries, Country A and Country B, have a well educated population but small capital stock. Initially they both have closed economies. Country B opens up for the world and can be observed as a small open economy. In what cou..
The long run is defined as:
A manufacturing company purchased electrical services for the next 5 years to be paid for with $70,000 now. The service after 5 years will be $15,000 per year beginning with the sixt year. After 2 years service, the company, having surplus profits, r..
Joe has never trusted banks and always kept his money in cash. Joe pulls out his money jar, discovers that it has $20,000 in it, and decides it is unsafe to keep that much cash. Joe stops at the Local
Discuss the pros and cons of the two “advanced” forms of estimating energy demand. What do they excel at and where are they lacking? How might policy changes be built into the models? Discuss the cost features of renewable energies in the supply elec..
If the average worker produces $80,000 of GDP, explain by how much will GDP increase if there are 150 million labor-force participants and the unemployment rate drops from 5.2 to 4.5 percent.
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