Compute set of rationalizable effort levels for each player

Assignment Help Game Theory
Reference no: EM13964813

Three game theorists work on a team project. Assume they work independently, and it is not possible for them to monitor each other. No one likes working, and the cost of efforts is measured in dollars. Each player can work up to 5 hours, and the cost per working hour is $6. The quality and hence the profit of the project is determined by the joint efforts (total number of working hours) of the three players. For each additional hour that the team invests in the project, up to 10 hours, the total profit will increase by $15. After 10 hours, efforts will not increase profits. Assume players divide the profit equally among them. Hence, each player's payoff is his share of the profit minus his cost. There is common knowledge of rationality.

(a) What is the strategy space (the set of strategies) for each player?

(b) What is the payoff for each player as a function of the strategy profiles?

(c) Compute the set of rationalizable effort levels for each player.

(d) Suppose one player is kicked out of the team, and the remaining two players still share the profit equally. Compute the set of rationalizable effort levels.

Reference no: EM13964813

Questions Cloud

Determine the temperature of the surface of the steam kettle : Determine the temperature of the surface of the steam kettle that is in contact with the stove.
Find an elementary matrix : Is it possible to find an elementary matrix E such that EB = C? Justify your answer in a proof. Write the matrix 3 -2 as a product of elementary matrices.
What is highest fundamental frequency that this string have : What is the length of the longest and thinnest string that can be placed under a tension of 890 N without breaking?
Compute the product by inspection : 1. Compute the product by inspection. 2. Use the given equation to determine by inspection whether the matrices on the left commute.
Compute set of rationalizable effort levels for each player : What is the strategy space (the set of strategies) for each player? What is the payoff for each player as a function of the strategy profiles? Compute the set of rationalizable effort levels for each player.
Differences between pasteurization,commercial sterilization : The discussion should be based on the processing method involved and preservation principles behind each method. In addition, what will be the shelf-life expectancy for food products treated by each one of these methods?
What change in magnetizing force required to decrease flux : What change in magnetizing force is required to decrease the flux density of magnetic material from a saturation in the positive direction to zero.
Unbounded self-adjoint operator : Let H be the unbounded self-adjoint operator defined by -d^2/dx^2 (the negative of the second derivative with respect to x) on: D(H) ={f element of L^2 | Integral( |s^2 F f(s)|^2 )ds element of L^2}
Problem regarding the basic matrix laws : Let A and B be arbitrary n x n matrices whose entries are real numbers. Use basic matrix laws only to expand (A + B)². Explain all steps. Hint: Use the distributive laws.

Reviews

Write a Review

Game Theory Questions & Answers

  Conditional probability to compute the other probability

For a class activity, your group has been assigned the task of generating a quiz question that requires use of formula for conditional probability to compute P(B/A).

  Peer-reviewed article

Describe the circumstances under which you should use ANOVA instead of t tests, and explain why t tests are inappropriate in these circumstances. Find a peer-reviewed article that reflects these circumstances, describe the research conducted (i.e...

  Find the nash equilibrium for the one shot game

In a one shot game, if you promote and your rival promotes, you will earn $7 million and your rival will earn $2 million in profits.

  Show that game has no nash equilibrium in pure strategies

Show that the game has no Nash equilibrium in pure strategies, and that the pair of mixed strategies in which each player chooses 1, 2, and 5 each with probability 1 is a mixed strategy Nash equilibrium.

  Approximation to the binomial

An injection molding machine produces golf tees that are 20.0% nonconforming. Using the normal distribution as an approximation to the binomial, find the probability that, in a random sample of 360 golf tees, 65 or less are nonconforming. Show you..

  Subgame perfect equilibrium - nash equilibrium

What is the smallest value of T for which it possible for B and b to be played in the first play of the game, in a subgame perfect equilibrium

  What are the nash equilibria in pure strategies

Draw the table for this game. What are the Nash equilibria in pure strategies? Can one of the equilibria be a focal point? Which one? Why?

  What is the subgame perfect pricing policy for tony

What is the subgame perfect pricing policy for Tony - Please make sure you write down the strategies for all players and show why it is subgame perfect

  Is there any equilibrium in which no player uses a action

Finally profiles in which the winner obtains three or more votes more than the loser.) Is there any equilibrium in which no player uses a weakly dominated action?

  Test statistic for the hypothesis test

Use the above survey results to test the claim that less than half of all Ohio State female students who, if they had a cell phone, would be willing to walk somewhere after dark that they would normally not go. What is the value of the test statis..

  Explain how payoff matrices used in game theory

Explain how payoff matrices used in Game Theory illustrate mutual interdependence among firms in oligopolies. How can they be used to predict likely outcomes?

  Interval estimate for population proportion of social media

Construct a 95% confidence interval estimate for the population proportion of social media users who would say it is not okay to friend their boss.

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