Calculate the value of delta , Macroeconomics

Consider the following prisoners' dilemma game.

 

 C

D

C

4,4

0,6

D

6,0

1,1

Suppose that this game is repeated innately and consider the following Tit-for-tat" strategy:

Choose C in period 1 and then do whatever your opponent did last period".

(a) For what values of δ, if any, both players choosing the \Tit-for-tat" strategy is a SPE?

Consider now the \Pavlov" strategy: \Choose C in period 1. Choose C after any history in which the outcome in the last period is either (C;C) or (D;D). Choose D after any other history."

(b) For what values of δ, if any, both players choosing the \Pavlov" strategy is a SPE?

 

Posted Date: 3/9/2013 3:30:11 AM | Location : United States







Related Discussions:- Calculate the value of delta , Assignment Help, Ask Question on Calculate the value of delta , Get Answer, Expert's Help, Calculate the value of delta Discussions

Write discussion on Calculate the value of delta
Your posts are moderated
Related Questions
According to the imperfect-information model, when the price level is greater than the expected price level, output will _____ the natural level of output A) be greater than

Consider a hospital that produces output (Q) and has two production inputs, nurse-hours (N) and beds (B). the hospital faces input costs of W N = 15 and W B = 25. Assume the h

I used to think that economic growth ( more production) was only possible / able to occur because banks lent out more than they had (fractional reserve credit banking). Apparently

The following Table B presents the 2010 population, employment, and unemployment data among working age persons for several countries. a. Calculate the number of people in the l

Who sets the prices in the market and what is the nature of competition? Is it buyer versus sellers or buyer versus buyers? What happens if the price is too high or too low? Is the

A recent article in the Cincinnati Enquirer reported that the mean labor cost to repair a heat pump is $90 with a standard deviation of $22. Montes plumbing and Heating Service com

A company can lease an asset for the next five years by making lease payments that are equivalent to annual payments of $3,000 at year 0, $6,000 at year 1, $7,000 at year 2, $7,000

Company A owns a patent with 15 years of remaining life. Company B is paying royalties to Company A for a license to the patent. It is estimated that royalty payments (end-of- year

The problem with the Keynesian model We can classify two problems with the Keynesian model as developed so far: 1. Π is exogenous. Although inflation may temporarily deviate

RELATIONSHIP WITH 8 VARIANTS OF NATIONAL PRODUCT AGGREGATES  We have shown the distinction between national product at market prices and national product at factor cost, based