Problem set #2, economics, Microeconomics

Assignment Help:
Two people are engaged in a joint project. If each person i puts in the effort xi, the outcome of the project is worth f(x1, x2). Each person’s effort level xi is a number
between [0,1], and effort costs c(xi). The worth of the project is split equally between the two people, regardless of their effort levels, so the net payoff of each player is
f(x1, x2)/2 - c(xi).
Draw the players Best Responses, and find the Nash equilibria when
(i) f(x1, x2) = 3x1x2 and c(xi) = xi
2, for i = 1, 2.
(ii) f(x1, x2) = 4x1x2 and c(xi) = xi, for i = 1, 2.
Provide a brief interpretation in each case.

Related Discussions:- Problem set #2, economics

Elasticities of demamnd, The demand for soft drinks has been estimated asQx...

The demand for soft drinks has been estimated asQx 20PX 0.25PY0.45M 2 Determine the own, cross and income price elasticities of demand. Interpret your results.

Why elasticity is important for economic analysis, Why elasticity is import...

Why elasticity is important for economic analysis?  Elasticity is a significant concept in understanding the incidence of indirect taxation, marginal concepts as they relate to

#consumer behaviour, using the marginal utility approach, discuss how econo...

using the marginal utility approach, discuss how economic theory explains the optimum pattern of consumption for an individual consumer. consider how far this analysis can explain

Insurance market and calculate risk premium, There are two individuals in t...

There are two individuals in town, one is high risk and the other is low risk.1 The probabilities of having an accident for the low risk individual and high risk individual are p

Consumer surplus, What is consumer surplus? What is its significance and wh...

What is consumer surplus? What is its significance and what causes it to change?

Discuss american long run growth1800-1973, American Long Run Growth, 1800-1...

American Long Run Growth, 1800-1973 Throughout the 19th and the first three quarters of twentieth century the measured pace of economic growth continued to accelerate. The meas

Capitalism, what to produce of capitalism

what to produce of capitalism

Explain supply of the commodity, The law of supply is that producers will s...

The law of supply is that producers will supply more the higher the price of the commodity.  The supply curve is an upward sloping function showing a direct relationship among pric

Total sales of industry, The sales of a company are the part of the total s...

The sales of a company are the part of the total sales of industry. If the conditions of industry changes then the sales of each of the firm in the industry is affected. All teh ti

Egyptian Labor Market.., How to use Demand and Supply tools to analyze the ...

How to use Demand and Supply tools to analyze the case of the Egyptian labor market?

Write Your Message!

Captcha
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