Marta and Sara are two students that devote part of their free time to doing surveys for
Question:
Marta and Sara are two students that devote part of their free time to doing surveys for a market research company. The income obtained from this activity depends on the number of surveys they do, bearing in mind that the girls may freely choose the interviewees. As they both live in the same neighborhood in case, they just interview their neighbors (N), they compete with the same people and their monthly income is about 250 Euros. If they both choose to go to other neighborhoods of the city and interview strangers (S), they can carry out more surveys and both their incomes would be 400. If one of them decides to go and interview people in another neighborhood but the other one does not, the former will obtain an income of 500, and the latter of 300, and vice versa. After receiving the order from the company, Marta is always the one who starts to work first. Sara has information about the places where Marta has done the surveys.
- Represent this game extensively.
- Represent this game normally and look for Nash equilibrium.
- Calculate the perfect equilibrium in subgames.
- Now imagine that none of the girls can know where the other one is carrying out the surveys (there is no sequentially). Represent the new game normally and calculate the Nash equilibrium(s) of the game.
Applied Regression Analysis and Other Multivariable Methods
ISBN: 978-1285051086
5th edition
Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg