Explain why the mixed strategy is logical nash equilibrium

Assignment Help Business Economics
Reference no: EM131094720

A) Explain why the mixed strategy is a logical Nash equilibrium, even though intuitively it seems like the worst thing that two friends could do.

 

B) Explain what a best-response function is.

Reference no: EM131094720

Questions Cloud

Attribute the difference to the effects of unionization : In trying to measure the extent to which labor unions are responsible for increasing wages, economists use sophisticated statistical methods to compare the wages of unionized workers with those of non-unionized workers. Explain why it is not legitima..
Equal pay for work of equal value : “Equal pay for work of equal value” is a commonly held goal, but “equal value” is hard to define. What would be the consequences of legislation that enforces equal pay for what turns out to be work of unequal value?
Pros and cons associated with a cap-and-trade program : Identify some pros and cons associated with a cap-and-trade (CAP) program. Does its implementation increase costs? Is it appropriate to describe CAP programs as merely a way for "big business" to buy their way out of meeting environmental compliance?
Law of diminishing marginal utility : An important law in economics is the “Law of Diminishing Marginal Utility”. Discuss what this law is and provide an example of diminishing marginal utility you’ve encountered recently.
Explain why the mixed strategy is logical nash equilibrium : Explain why the mixed strategy is a logical Nash equilibrium, even though intuitively it seems like the worst thing that two friends could do. Explain what a best-response function is.
Economy is experiencing a sharp rise in the inflation rate : Suppose that you are a member of the Board of Governors of the Federal Reserve System. The economy is experiencing a sharp rise in the inflation rate. What change in the federal funds rate would you recommend? How would your recommended change get ac..
Should the company charge to maximize profits : A company's marketing department has determined that if their product is sold at the price of p dollars per unit, they can sell q=1800−200p units. Each unit costs 7 dollars to make. What price, p, should the company charge to maximize their revenues?..
Increase in riskiness of bonds relative to holding money : Show the IS, LM or FE curve shifts in response to the following events. Note we are not analyzing general equilibrium here, just the shifts of the individual curves.  Increase in the riskiness of bonds relative to holding money
Economic reasons that led to this shutdown : Between October 1st and October 16th, 2013; the United States experienced partial Government Shutdown. In your view, what were the economic reasons that led to this shutdown? Is it likely for US to experience another shutdown in future?

Reviews

Write a Review

Business Economics Questions & Answers

  Explain impact of mcdonald new launch

Explain do you think McDonald's new launch will have a sustainable impact on its bottom line.

  Evaluate measures used by governments and central banks

Critically evaluate measures used by governments and central banks to manage the economies of their countries. By critical evaluation use convincing arguments for or against measures used to reduce, minimise or alleviate economic difficulties many..

  Considered an example of adverse selection

Which of the following would be considered an example of adverse selection?

  Nash equilibrium lead to significant economic discoveries

The Nash Equilibrium provided a new look at certain economic problems and won the Nobel Memorial Prize in Economic Sciences in 1994. Since it's creation, the Nash Equilibrium has been applied to "international relations" specifically for war and arms..

  What happens to the interest rate and investment in response

Suppose that the government increases taxes and government purchases by equal amounts. What happens to the interest rate and investment in response to this balanced-budget change? Does your answer depend on marginal propensity to consume?

  Determine number of lamps this firm would produce in order

indicate for each price whether the firm will produce, shut down, or be indifferent between the two in the short run, and whether it will make a profit, suffer a loss, or break even.

  How much did lori save and what is here wealth at the end

lori is a student who teaches golf on the weekend and in a year earns $40,000 in fees after paying her taxes. How much did Lori save in 2009 and what is here wealth at the end of 2009?

  Q demand can be predicted with experimental data

q. demand can be predicted with experimental data cross-section data or time-series data. in this case cross-section

  Tend to rise in response to a natural disaster

Prices (fuel, water, grocery items, etc.) tend to rise in response to a natural disaster.

  Taxable income has encouraged firms

The fact that a percentage of the interest income paid by one corporation is excluded from taxable income has encouraged firms to use more debt financing relative to equity financing.

  Elucidate why currency depreciation leads to an improvement

Elucidate why a currency depreciation leads to an improvement in a countries balance of trade.

  At what level of output would the firm produce

Indicate profit- maximizing level of output. If the price was $3 and fixed costs were $5, what would vaiable cost be? At what level of output would the firm produce?

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