Parents repeat this game for 52 weeks

Assignment Help Business Economics
Reference no: EM132283879

On a given week, two selfish parents simultaneously choose between spending time with their children (S) or not (N). The payoff matrix is the following. Player 1 Player 2 S N S 5,5 -1,6 N 6,-1 0,0 (a) Assume that the parents repeat this game for 52 weeks. What are the Subgame Perfect Nash Equilibrium strategies? What is the SPNE outcome? (b) Now assume the parents repeat this game infinitely. Consider the following strategy: "Start by Playing S and continue playing S as long as (S,S) was played on every previous week. Otherwise, play N forever." Assume Payer 1's discount factor is δ1 = ¼ and Player 2's is δ2 = 1/8. Is it a SPNE for both players to play the strategy above? Why or why not?

Reference no: EM132283879

Questions Cloud

Define arbitrage : Economic data and analyses have failed to explain international asset arbitrage behaviour or condition with economic variables such changes
Raising money on the global capital market : What are the advantages & disadvantages of the options for raising money on the global capital market?
Identify the physical threat : Critique a profile of a terrorist group that identifies their ideology, location, weapons, past targets, and rationale. Be brief but specific.
How can we redefine our ideas about success : How will you, as a principal, teach your staff and students that we need to learn from our mistakes to improve our performance?
Parents repeat this game for 52 weeks : On a given week, two selfish parents simultaneously choose between spending time with their children (S) or not (N). The payoff matrix is the following.
How will you have to prepare for the new assessment : How has this video motivated you to look at other assessments that you may not have tried before and as a principal, challenge your staff to do the same?
What is m-l condition : This relation is described by the J-curve. What is M-L condition and how it is related to J-curve?
Implement basic sql queries for a given database schema : COSC210 - Database Management Systems - University of New England Work with an exiting database, by interpreting its schema form SQL - Implement some basic SQL
Does the federal reserve have too much power : Does the Federal Reserve have too much power? Did they overstep their authority in the ways that they have dealt with the problem?

Reviews

Write a Review

Business Economics Questions & Answers

  Buy tickets for your favorite opera and why

You value hearing your favorite band as worth $500. What do you do? Go to the corn hole or buy tickets for your favorite opera and why.

  Find the probability that none of the households

Find the probability that none of the households are tuned to Degenerate Housewives.

  Mike optimal amount of consumption

Mike's utility function for consumption and leisure is U(C; L) = C1=2 L1=2. There are 168 hours in the week and he earns $10 per hour. a) What is Mike's optimal amount of consumption, hours of work and of leisure?

  Produces zero output in the short run

Which of the following is not true if a firm shuts down and produces zero output in the short run: A. Variable cost will be zero B. Losses will be incurred C. Fixed costs will be greater than zero D. Fixed cost will be less than zero.

  What price will he sell services at

number of items dry cleaned and p is the price of each item in dollars. What price will he sell services at?

  Macroeconomic equilibrium in the short run and the long run

Assuming that money is effectively used, how would this affect the macroeconomic equilibrium in the short run and the long run?

  Mediation be able to lessen probability of strike occurring

How might mediation be able to lessen the probability of a strike occurring? In what situation might mediation be more successful than in others? Answer the same questions for fact finding.

  Explain the process of money market hedge

IBM purchased computer chips from NEC, a Japanese electronics concern, and was billed ¥250 million payable in three months. Currently, the spot exchange rate is ¥111/$ and the three-month forward rate is ¥107/$. Explain the process of a money market ..

  Discuss the implications and viability of the model

Discuss the effectoveness of government transfers to reduce economic distressin the context of a two period Ricardian Equivalence model. Discuss the implications and viability of the model.

  Rate of interest that company is paying for borrowed money

A company sold a $1,000,000 issue of bonds with a 15-year life, paying 4% interest per year. The bonds were sold at par value. If the company paid a selling fee of $50,000 and has an annual expense of $70,256 for mailing and record keeping, what is t..

  Observations was drawn from a normal population

The sample mean and standard deviation are X =175 and s=30. Estimate the population mean with 90% confidence.

  Also that would you considers more likely

Also that would you considers more likely, to longer-term- U.S. government bonds have a high interest rate than short-term U.S. government bonds or vice versa.

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