A student, player 1, has to hand in a problem set at the other end of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A student, player 1, has to hand in a problem set at the other end of (a large) campus but needs to rush into an exam. She has two options. She can deliver the problem set after the exam (call this option L) and incur a late penalty. Alternatively she can give the problem set to player 2, a random student who happens to be next to player 1 (call this option S). Player 2 can then either deliver the problem set on time (call this option D) or throw it away in the nearest trash can (call this option 7). For player 1 the payoff is 1 if the problem set is delivered on time, -1 if it is thrown away, and 0 if it is delivered late. The payoffs for player 2 are x if he delivers and y if he throws it away. Draw the game tree that represents this game. Using equilibrium analy- sis, what conditions on x and y would justify player 1 trusting player 2 to deliver the problem set? b. Now assume that some proportion p of the population of students are "nice guys" (N), for which x = 1 and y = 0, while a proportion 1 - p of the population are "jerks" (J), for which x = 0 and y = 1. Thus we can think that before the game is played, Nature first chooses the type of player 2 that player 1 will meet, according to the probabilities previously described. Draw the game tree. c. Now assume that for (b) p = 2. What are the pure-strategy Bayesian Nash equilibria of this game? Are there Bayesian Nash equilibria that are not perfect Bayesian equilibria? A student, player 1, has to hand in a problem set at the other end of (a large) campus but needs to rush into an exam. She has two options. She can deliver the problem set after the exam (call this option L) and incur a late penalty. Alternatively she can give the problem set to player 2, a random student who happens to be next to player 1 (call this option S). Player 2 can then either deliver the problem set on time (call this option D) or throw it away in the nearest trash can (call this option 7). For player 1 the payoff is 1 if the problem set is delivered on time, -1 if it is thrown away, and 0 if it is delivered late. The payoffs for player 2 are x if he delivers and y if he throws it away. Draw the game tree that represents this game. Using equilibrium analy- sis, what conditions on x and y would justify player 1 trusting player 2 to deliver the problem set? b. Now assume that some proportion p of the population of students are "nice guys" (N), for which x = 1 and y = 0, while a proportion 1 - p of the population are "jerks" (J), for which x = 0 and y = 1. Thus we can think that before the game is played, Nature first chooses the type of player 2 that player 1 will meet, according to the probabilities previously described. Draw the game tree. c. Now assume that for (b) p = 2. What are the pure-strategy Bayesian Nash equilibria of this game? Are there Bayesian Nash equilibria that are not perfect Bayesian equilibria?
Expert Answer:
Answer rating: 100% (QA)
a Drawing the Game Tree and Analyzing Equilibria The game tree and analysis provided for player 1 tr... View the full answer
Related Book For
Fundamentals Of Human Resource Management
ISBN: 9781119032748
12th Edition
Authors: David A DeCenzo, Stephen P Robbins, Susan L Verhulst
Posted Date:
Students also viewed these finance questions
-
How do individuals construct and curate their digital identities on social networks, and what are the ramifications for authenticity and social cohesion ?
-
The newspaper production process has come a long way from the old days when the paper was written, edited, typeset and ultimately printed in one building with the journalists working on the upper...
-
Read the case study below and answer all the FOUR (4) questions that follow. THE DREAM DOOR FOR DAK Introduction It was a nice sunny morning in Zurich. DAK Europes chairman gathered all of his board...
-
A 40-cm-long, 800-W electric resistance heating element with diameter 0.5 cm and surface temperature 120C is immersed in 75 kg of water initially at 20C. Determine how long it will take for this...
-
The human ear canal is much like an organ pipe that is closed at one end (at the tympanic membrane or eardrum) and open at the other (FIGURE 14-48). A typical ear canal has a length of about 2.4 cm....
-
Susie's Sweet Shop has the following sales, payroll and property factors: ______________Iowa _________Missouri Sales ............. 69.20% ............. 32.01% Payroll .......... 88.00%...
-
The following MINITAB output presents the results of a hypothesis test for a mean difference. a. Is this a left-tailed test, a right-tailed test, or a two-tailed test? b. Can H0 be rejected at the...
-
Cost data for T. Clark Manufacturing Company for the month ending April 30, 2008, are as follows: Inventories April 1 April 30 1.Prepare a cost of goods manufactured statement for April...
-
Cost information of the Alpha Pvt Ltd. show the following purchases and issues of materials during October: October 1. Beginning Balance: 2800 units @ Rs. 12.00 per unit. 4. Issued 1200 units. 6....
-
Peru Furniture City, Inc., sold $88,000 of furniture in May to customers who used their American Express Credit Cards. Such sales are subject to a 5% discount by American Express (a nonbank credit...
-
Demonstrate workflow concepts that would assist in managing the transition to the new EHR system. Examine at least two workflow concepts and discuss its use in supporting internal policies,...
-
Midpoint: Find the midpoint between the points (-1,-) and (-3, 3).
-
Use a calculator. Round to the nearest tenth. Given cos 0 = 0.1959, find 0.
-
Compare and contrast the ecological approach paradigm and the information-processing approach paradigm of cognitive psychology. Which of these do you think is a more holistic approach to...
-
The issues that arise from China inside of the BLOC is their economy. The economy within China is one that the transformation of growth has been quick. From being a poor economy to just under the...
-
Three charges are fixed to an xy coordinate system. A charge of + 2 7 C is on the y axis at y = + 4 . 1 m . A charge of - 1 3 C is at the origin. Lastly, a charge of + 4 6 C is on the x axis at x = +...
-
Analyse the following table, assuming that the cost of capital for the firm is 15%. Time(t) 355 NPV X 7,000 $7,580 -25,000 20,000 14,000 -30,000 10,000 15,000 30,000 Y $9,763 a) If X and Y are...
-
Baxter, Inc., owns 90 percent of Wisconsin, Inc., and 20 percent of Cleveland Company. Wisconsin, in turn, holds 60 percent of Clevelands outstanding stock. No excess amortization resulted from these...
-
Explain human resource planning and explain why it is important to organizations.
-
The U.S. Navy may not be the first employer that comes to mind when you think of employers that are making efforts to help employees with worklife balance issues. However, the Navy has made...
-
Summarize the ways unions differ globally.
-
Your medical terminology instructor listed the following grades for the class out of a 75-point test: 34, 36, 41 , 43, 44,49,50, 55,57, 60,64, 66, 67,67, 67,68,68,69, 70, 73 a. Find the 90th...
-
From the following list of number of discharges each day in September, compute the mean, median, mode, and range. Round the mean and median to one decimal point. University Hospital Number of...
-
Use the following information to compute the ALOS and median LOS and range for Community Nursing Center. The discharge date is June 2, 20XX (a non-leap year). Round the ALOS to one decimal place....
Study smarter with the SolutionInn App