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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?
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 are tuned to Degenerate Housewives.
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 $10 per hour. a) What is Mike's optimal amount of consumption, hours of work and of leisure?
Which of the following is not true if a firm shuts down and produces zero output in the short run: A. Variable cost will be zero B. Losses will be incurred C. Fixed costs will be greater than zero D. Fixed cost will be less than zero.
number of items dry cleaned and p is the price of each item in dollars. What price will he sell services at?
Assuming that money is effectively used, how would this affect the macroeconomic equilibrium in the short run and the long run?
How might mediation be able to lessen the probability of a strike occurring? In what situation might mediation be more successful than in others? Answer the same questions for fact finding.
IBM purchased computer chips from NEC, a Japanese electronics concern, and was billed ¥250 million payable in three months. Currently, the spot exchange rate is ¥111/$ and the three-month forward rate is ¥107/$. Explain the process of a money market ..
Discuss the 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.
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..
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, to longer-term- U.S. government bonds have a high interest rate than short-term U.S. government bonds or vice versa.
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