The graph below shows the results from the Takeover Game we played in class on March...

 

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The graph below shows the results from the Takeover Game we played in class on March 30. The Bayesian Nash for this game is shown by a thick line. Values of the good are randomly given to owners on [$0,$1] and buyers are ensured 1.5 times value if their offer is accepted by the owner. $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 1 Treatment 1 2 Treatment 2 (reversed roles) 3 4 5 6 7 8 Takeover Game Average Offers Eco235 Takeover March 30 2023 9 Answer the following questions: 1. Why does the buyer have a Bayesian Nash strategy of $0 for this game? 2. Why can no other strategy be supported with this setup? 10 30 participants KEY: Treatment 1: Average Offer on [$0, $1] M = 1.5 fixed matchings Treatment 2: Average Offer on [$0, $1] M = $1.5 fixed matchings round The graph below shows the results from the Takeover Game we played in class on March 30. The Bayesian Nash for this game is shown by a thick line. Values of the good are randomly given to owners on [$0,$1] and buyers are ensured 1.5 times value if their offer is accepted by the owner. $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 1 Treatment 1 2 Treatment 2 (reversed roles) 3 4 5 6 7 8 Takeover Game Average Offers Eco235 Takeover March 30 2023 9 Answer the following questions: 1. Why does the buyer have a Bayesian Nash strategy of $0 for this game? 2. Why can no other strategy be supported with this setup? 10 30 participants KEY: Treatment 1: Average Offer on [$0, $1] M = 1.5 fixed matchings Treatment 2: Average Offer on [$0, $1] M = $1.5 fixed matchings round