Jim and Kate are the founders of MetaSMART company. They agree on a corporate governance scheme...

 

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Jim and Kate are the founders of MetaSMART company. They agree on a corporate governance scheme between them: Only Jim can propose any proposal, and only Kate can then decide to pass the proposal or reject it. Assume there are two potential projects X and Y that are known to both partners. Their preference rankings below are common knowledge to each other: The preference ranking of Jim is Take project X>take both projects> take neither project>take project Y. The preference ranking of Kate is Take project Y>take both projects> take neither project>take project X. (a) (b) Interpret the context as a game between Jim and Kate, illustrate and analyse the game. (Hint: 'Interpret' is to identify the key components that a reader needs to know about the game, such as the players, available strategies, and payoffs) [Word limit= 300 (excluding reference and figures)] Assume the scheme is changed so that Kate can decide part of the proposal (e.g., when Jim proposes both X and Y, Kate can pass Y and deny X). Explain the changes in game caused by the new scheme and discuss whether Kate is better off in the new scheme. [Word limit= 300 (excluding reference and figures)] Jim and Kate are the founders of MetaSMART company. They agree on a corporate governance scheme between them: Only Jim can propose any proposal, and only Kate can then decide to pass the proposal or reject it. Assume there are two potential projects X and Y that are known to both partners. Their preference rankings below are common knowledge to each other: The preference ranking of Jim is Take project X>take both projects> take neither project>take project Y. The preference ranking of Kate is Take project Y>take both projects> take neither project>take project X. (a) (b) Interpret the context as a game between Jim and Kate, illustrate and analyse the game. (Hint: 'Interpret' is to identify the key components that a reader needs to know about the game, such as the players, available strategies, and payoffs) [Word limit= 300 (excluding reference and figures)] Assume the scheme is changed so that Kate can decide part of the proposal (e.g., when Jim proposes both X and Y, Kate can pass Y and deny X). Explain the changes in game caused by the new scheme and discuss whether Kate is better off in the new scheme. [Word limit= 300 (excluding reference and figures)]

Answer rating: 100% (QA)

a Game Analysis In this context the game is between Jim and Kate the two founders of Metasmart company who need to decide which projects to undertake ... View the full answer