Suppose you and your class mate have to do a group assignment. Both of you can...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Suppose you and your class mate have to do a group assignment. Both of you can decide to work or shirk. If you both work, then both will get a good mark but both incur the cost of working. If one person works, you get a bad mark but the person who shirked will not have to put in the effort. If both shirk then the students will get an even worse mark but do not have to put in effort. The following table represents the individuals' utilities (as always the first number is the payoff of the row player): you work shirk classmate work 4,4 5,1 shirk 1.5 2,2 Suppose both students are inequality averse and lose half a unit of utility for each unit difference in payoffs. In other words u(x, y) = x (x - y)/2. Show the payoff table with the psychological payoffs. Find all pure-strategy Nash equilibria and discuss. - Suppose you and your class mate have to do a group assignment. Both of you can decide to work or shirk. If you both work, then both will get a good mark but both incur the cost of working. If one person works, you get a bad mark but the person who shirked will not have to put in the effort. If both shirk then the students will get an even worse mark but do not have to put in effort. The following table represents the individuals' utilities (as always the first number is the payoff of the row player): you work shirk classmate work 4,4 5,1 shirk 1.5 2,2 Suppose both students are inequality averse and lose half a unit of utility for each unit difference in payoffs. In other words u(x, y) = x (x - y)/2. Show the payoff table with the psychological payoffs. Find all pure-strategy Nash equilibria and discuss. -
Expert Answer:
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date:
Students also viewed these economics questions
-
In the Hollywood movie A Beautiful Mind, Russel Crowe plays John Nash who developed the Nash Equilibrium concept in his PhD thesis at Princeton University. In one of the early scenes of the movie,...
-
In many situations, we are confronted with the decision of whether to challenge someone who is currently engaged in a particular activity. In personal relationships, for instance, we decide whether...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Solve each of the linear systems in Problems 13 through 20 to determine whether the critical point (0, 0) is stable, asymptotically stable, or unstable. Use a computer system or graphing calculator...
-
What is the primary purpose of using special journals?
-
1. The Web site http://www.sscicentral.com provides information on several IRT programs, including BILOG-MG, PARSCALE, and IRTPro. The Web site has a student version of IRTPro available for download....
-
What are the different types of consulting and litigation support activities for fraud and forensic accounting professionals?
-
Near the end of 2011, the management of Simid Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2011. To prepare a master budget for January,...
-
Why is it important to learn SQL? In which jobs you need to know SQL? 2A- What is the definition of DML and DDL? Give examples in each case. 2B- Consider the following two tables below: VENDOR and...
-
Construct a payoff table for the various demand and stocking quantities. Determine the best amount to stock using regret (minimax). A market buys T-bone steaks from a universitys animal science...
-
What did you learn from your exploration?: An IRA is a tax-advantaged investment account that you can use to save for retirement. Technically, IRA stands for Individual Retirement Arrangement, but...
-
Suppose someones willingness to pay for a good is $10 and their reference point is $20. If the good is $13 will they buy it? What does this tell us about sales and bargain buys?
-
If the semi-elasticity between x and y is -0.25, what does it mean? A. When x decreases by 2 units, y increases by 0.5 unit B. When x decreases by 1%, y increases by 0.25 unit C. When x increases by...
-
Amazon acquired Whole Foods Market. How would you evaluate the impact of TVM on this transaction?
-
Analyze these two commercials using IMC plan (marketing ) . Compare and Contrast both . what are the objectives and target market issues? Pepsi superbowl , 2007 Britney Spears featuring Bob Dole and...
-
Note that you must answer both parts (a) and (b) of this question. Show all formulae and calculations. Round to 2 decimal places. (a) Calculate the Price / Earnings ratio of A Co; B Co and C Co. Use...
-
Elevation and Red Blood Cell Count It is hypothesized that runners who live "high" and train "low" have higher EPO and RBC counts. Below is the data to predict the RBC count based on the living...
-
Burberrys competitive advantage is through its differentiation strategy. What risk should Burberry remain aware of?
-
Since the early 1970s, the U.S. government has had a program called the Earned Income Tax Credit (previously mentioned in end-of-chapter exercises in Chapter 3.) A simplified version of this program...
-
Suppose I run a fast-food restaurant and I know my customers come in on a limited budget. Almost everyone that comes in for lunch buys a soft-drink. Now suppose it costs me virtually nothing to serve...
-
Policymakers frequently search for ways to reduce consumption of gasoline. One straightforward option is to tax gasoline thereby encouraging consumers to drive less in their cars and switch to more...
-
Rank in order, from largest to smallest, the size of the friction forces in the five different situations (one or more friction forces could be zero). The box and the floor are made of the same...
-
The terminal speed of a Styrofoam ball is 15 m/s. Suppose a Styrofoam ball is shot straight down with an initial speed of 30 m/s. Which velocity graph is correct? Vy (m/s) Vy (m/s) v, (m/s) vy (m/s)...
-
Boxes P and Q are sliding to the right across a frictionless table. The hand His slowing them down. The mass of P is larger than the mass of Q. Rank in order, from largest to smallest, the horizontal...
Study smarter with the SolutionInn App