Discover the nash equilibrium or equilibrium of this game

Assignment Help Microeconomics
Reference no: EM13687727

In a two-player one shot simultaneous move game, each player can choose strategy A or strategy B. If both players choose strategy A, each player earns a payoff of $400. If both players choose strategy B, each player earns a payoff of $200. If player 1 chooses strategy A and player 2 chooses strategy B then player 1 earns $100 and player 2 earns $600. If player 1 chooses strategy B and player 2 chooses strategy A then player 1 earns $600 and player 2 earns $100.

1. Write the above game in normal form.

2. Discover each player's dominant strategy, if it exists.

3. Discover the Nash equilibrium or equilibrium of this game.

4. Rank strategy pairs by aggregate payoff (highest to lowest).

5. Can the outcome with the highest aggregate payoff be sustained in equilibrium? Why or why not?

Reference no: EM13687727

Questions Cloud

What is the rms voltage output of the generator : A 460-loop circular armature coil with a diameter of 9.0 cm rotates at 190rev/s in a uniform magnetic field of strength 0.55T. What is the rms voltage output of the generator
Use the klein model to show that in the hyperbolic plane : Use the Klein model to show that in the hyperbolic plane
Define modern economic growth : Define "modern economic growth" and describe the institutional structures needed for an economy to experience it. Identify the general supply, demand, and efficiency forces that give rise to economic growth. Explain "growth accounting" and the specif..
Determine how much power is dissipated in a resistor : An AC generator supplies 150 V peak voltages at 250 Hz frequency. How much power is dissipated in a resistor with R = 135 Ohm resistance connected to the generator
Discover the nash equilibrium or equilibrium of this game : In a two-player one shot simultaneous move game, each player can choose strategy A or strategy B. If both players choose strategy A, each player earns a payoff of $400. If both players choose strategy B, each player earns a payoff of $200.
Find the charge-to-mass ratio of the particle : A charged particle moves through a velocity selector at a constant speed in a straight line. Find the charge-to-mass ratio of the particle
Find the angular momentum of the particle : A small particle of mass 0.225kg is moving on a circle of radius 2m. Find the angular momentum of the particle when its speed is 8m/s
Explain an experience that you have had working on a team : Explain an experience that you have had working on a team. As a part of your response discuss how the team was evaluated. Also discuss whether or not the free-rider problem existed on your team. If it did exist also discuss how/if the problem was add..
Find the angular momentum of the particle : A small particle of mass 0.225kg is moving on a circle of radius 2m. Find the angular momentum of the particle when its speed is 8m/s

Reviews

Write a Review

Microeconomics Questions & Answers

  Draw what happens in the economy in short run when interest

1draw what happens in the economy in the short run when interest rates fall.a.what components of gdp change-how and

  Recognize capital resources for country you selected for

identify the capital resources for the country you selected for your term paper phillipines. are the machinery

  Define the price elasticity of demand

Suppose the equilibrium price in the market is $10 and the price elasticity of demand for the linear demand function at the market equilibrium is 1.25. Then we know that a demand is inelastic.

  Why does the consumers price elasticity of demand for good

why does a consumers price elasticity of demand for a good depend on the fraction of the consumers income spent on the

  200 million euros due one year from now,

If your company has a payment of 200 million euros due one year from now, how would you hedge the foreign exchange risk in this payment with 125,000-euro futures contracts?

  Calculate the optimal price for papa burgers

Calculated the point price elasticity of demand for Papa burgers and calculate the optimal price for Papa burgers if marginal cost is $1 per unit.

  Open market operations in expansionary monetary policy

A Restrictive monetary policy by the Fed must lead to: A primary goal of monetary policy is to: The major tools of monetary policy available to the Federal Reserve System involve: When the Federal Reserve uses open market operations (OMO) in an expan..

  Are these goods substitutes or complements for cigarettes

The case study presented in the chapter discussed cigarette taxes as a way to reduce smoking. Now think about the markets for other tobacco products such as cigars and chewing tobacco.

  Exposure to exchange rate risk

Exposure to exchange rate risk.

  Determine whether to utilize no insulation

Parker County Community College (PCCC) is trying to determine whether to utilize no insulation or to use insulation that is either 1 inch thick or 2 inches thick on its steam pipes. The heat loss from the pipes without insulation is expected to cost ..

  The underlying trend of growth in the economy

The underlying trend of growth in the economy is determined by the growth in the number of workers, the growth in the savings and investment rate.

  Using the itt tech virtual library research information on

using the itt tech virtual library research information on companies that have engaged in monopoly behavior such as

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