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Please lower your price and we have a deal 5) Consider two people playing an ultimatum game over $10 that can be divided in $1increments ($10-$0, $9-$1, $8-$2, etc.). Suppose it is common knowledge among them that both have Fehr-Schmidt utility functions with the assumptions given in lecture. a) What is the subgame perfect Nash equilibrium if it is common knowledge that both players have a= 1.5 and = 0.6? Show your work/logic b) What is the subgame perfect Nash equilibrium if it is common knowledge that both players have a= 0.3 and= Show your work/logic
The buyer wants to have an interest rate profit of 8% compounded semiannually
Assume only two countries, China and the US. If China decides to stimulate growth through a policy of running a large export trade surplus, does China’s national savings increase? Show the relationship between China’s national savings, domestic inves..
a hotel chain which gives it priority access to 25 percent of its rooms in major tourist destinations throughout the year. The contract encourages the hotel chain to increase the number of rooms in each of these hotels.
in light of the economic struggles that many states are facing today every area of the criminal justice system is
Suppose a monopoly manufacturer sells directly to a monopoly retailer. What are the implications in regard to price, output, and profits as compared to the case where the monopoly manufacture and monopoly retailer merge
The Federal Reserve issued the Federal Open Market Committee (FOMC) statement after its meeting. This information is highly anticipated because it clarifies the stance of monetary policy in the future.
Using aggregate demand, short run aggregate supply, and long run aggregate supply curves, describe the process through which each government policies will move economy from one long run macroeconomic equilibruium to another.
A light duty pickup truck has a manufacturer's suggested retail price (MSRP) of $14,000 on its window. After haggling with the salesperson for several days, the prospective buyer is offered the following deal:
Analyze the following statement: "International policy coordination is plagued by differing national economic objectives, institutions, political climates, and phases in the business cycle."
Derive, and show on a table, Sony's total and marginal revenue for all possible output levels. From this, draw Sony's demand, marginal revenue and marginal cost curves
If the nominal money supply grows 10%, the inflation rate is 6%, and the income elasticity of money demand is 1.0, then real income growth equals
The change in the consumption of good X due to the change in the price of good X while holding the consumer’s utility level constant at the original level of satisfaction.
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