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1. What is the equilibrium outcome to the Stackelberg game if the absolute value of the slope of firm 2's best-response function exceeds 1? Why?
2. The Lochend Luing Ranch operates a slaughterhouse in Dog Pound. Business has been very profitable. However there are dark clouds on the horizon. Bell L Ranches is considering entering the lucrative meat market in Dog Pound. The profits of Lochend Luing Ranch (LLR) if it is a monopolist are 15; if Bell L enters and LLR accommodates and shares the market the duopolyprofits for each are 5; if Bell L enters and LLR launches a price war, both firms earn -1.
(a) Draw the game tree for this situation and determine the outcome.
(b) Launching a price war involves not only charging a very low price, but also printing circulars to inform the public of the great deals available. Suppose that the situation is identical to that in (a), but that LLR can print its flyers up before Bell L makes its entry decision. The cost of printing up flyers is 8. Draw the game tree for this situation and determine the outcome.
(c) What does your answer to (b) imply about the relationship between sunk costs, first-moveradvantages, and entry deterrence.
Suppose this reliability cannot be met, and the actual median is 20,000. So the company instead implements a preventive maintenance policy with a maintenance cycle of 4,000 hours. What is the new reliability at 10,000 hours?
assume two classmates a and b are assigned an extra group project. each student can choose to shirk or work. if one or
Construct a 95% confidence interval estimate for the population mean price for two movie tickets, with online service charges, large popcorn, and two medium soft drinks, assuming a normal distribution.
After researching cysts of a particular type, a doctor learns that out of 10,000 such cysts examined, 1,500 are malignant and 8,500 are benign. A diagnostic test is available which is accurate 80% of the time (whether the cyst is malignant or not)..
Identify which player can benefit from making a strategic move, identify the natu re of the strategic move appropriate for this purpose.
You are using the Durbin-Watson statistic to discover whether the value of your dependent variable at time t is related to its value at the previous time period.
If each group had 15 officers, how would you characterize the performance of the typical officer in each squad?
where time is measured in months and 0
Do you think farmers collected more or less hay once this law was established and do you think Iceland's prosperity improved because of good neighbors?
Write down the payoff table for this game, and find the equilibrium when the two firms move simultaneously. Write down the game tree for this game, with Coke moving first and Pepsi following.
Create a payoff matrix for game assuming students choose to slack or work simultaneously and find the Nash equilibrium and explain why the result you found is a Nash equilibrium.
Find all Nash equilibria in pure strategies in the following non-zero-sum games. Describe the steps that you used in finding the equilibria.
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