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Now consider a modified version of Problem where the defense is also allowed to roll multiple dice. Each player's highest roll is compared with the other player's highest roll, their second highest roll is compared with the other player's second highest roll, etc. As before, any ties go to the defense.
(a) Suppose both players roll two dice. In this case, there are two armies to be lost since there are two dice comparisons (highest vs. highest and lowest vs. lowest). Find each of the following probabilities:
(i) Offense wins both comparisons (and thus defense loses two armies).
(ii) Offense wins one comparison and defense wins the other (and thus each lose one army).
(iii) Defense wins both comparisons (and thus offense loses two armies).
(b) Repeat all the calculations in part (a) for the scenario where the offense rolls three dice and the defense rolls two dice. As before, there are two comparisons to be made in this scenario (highest vs. highest and second highest vs. second highest).
Little Kona is a small coffee corporation that is planning entering a market dominated through Big Brew. Each corporation's profit depends on whether Little Kona enters and whether Big Brew sets a high price or a low price.
Describe the meaning of a Nash Equilibrium when companies are competing with respect to price. Explain why is the equilibrium stable?
Determine which pair of strategies would competing companies A and B choose given this payoff matrix?
Is it a strictly dominant strategy to bid your true valuation in this auction? Is it a weakly dominant strategy to bid your true valuation in this auction?
After preceding application is written, modify it to produce a short story consisting of several of these sentences. (How about the possibility of a random term-paper writer?)
Advanced Micro Devices declared a 10 percent price raise for certain advanced microprocessors, used primarily in video games. The processors will sell for about $1,000 compared to Intel's $950 price.
A random sample of 100 computers showed a mean of 115 gigabytes used with a standard deviation of 20 gigabytes. What is the standard error of the mean.
What is mixed-strategy equilibrium of game and what are the pure strategy Nash equilibria to this game when n = 2 and when n = 10.
Extensive game with perfect information - The political figures Rosa and Ernesto each has to take a position on an issue. The options are Berlin (B) or Havana (H). Represent the game in a diagram and find the outcome of this game using backward ind..
A certain lottery game is played by choosing four numbers from 1 to 15 (no repetition of numbers;order of the numbers does not matter).
Compare the BNE prices if Firm l's realized cost is high with the equilibrium prices in the game where it is common knowledge that Firm 1 has high marginal cost (cH).
A public relations intern realizes that she forgot to assemble the consumer panel her boss asked her to do. She panics and decides to randomly ask (independent) people if they will work on the panel for an hour.
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