Consider a bankruptcy game with two risk neutral players where V =$800,000, C1= $300,000 and C2=$800,000 a) What is the Kalai-Smorodinsky bargaining solution?
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Consider a bankruptcy game with two risk neutral players where V =$800,000, C1= $300,000 and C2=$800,000
a) What is the Kalai-Smorodinsky bargaining solution?
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- Consider a bankruptcy game with two risk neutral players where V =$800,000, C1= $300,000 and C2=$800,000. a) What is the Nash bargaining solution?Consider a bankruptcy game with two risk-neutral players where V = $600,000, C1 = $400,000, and C2 = $800,000. What is the Nash bargaining solution?4. Consider a bankruptcy game with two risk neutral players where V = $800,000, C1 = $300,000, and C2 = $800,000. a. What is the Nash bargaining solution? b. What is the Kalai-Smorodinsky bargaining solution?
- Consider the following two player bi-matrix game 19 6 19 1 -10 A = = 7 -(:D --67-3 12 6 B = 0 -8 -5 2 14 16/ -9 1 a) Find all pure strategic equilibria. b) Find safety levels of players.Suppose there are N identical firms in a market where the maximum total profit is 12. Assuming an infinite game, if the firms fully cooperate, each would get 12/N in profit. If one firm cheats, it gets the entire market profit for one period, followed by a profit of 1 in all future periods, The discount rate r is .33. How large can N be and still sustain cooperation? That is, how many firms can there be before cooperation breaks down?(a) Consider a 2-player zero-sum game with the following payoff matrix, in which a E R is some fixed value. The matrix is given, as usual, from the perspective of the row player. C1 C2 α C3 5 T1 1₂-1 2 -4 T3 2 -2 1 (i) For what range of values for a will (r₁, C₁) be a pure Nash equilibrium of this game? Justify your answer. (ii) Treating a as a constant, give a linear program to find the optimal mixed strategy for the row player. (iii) Suppose that you were given some optimal mixed strategy x for the row player. Explain how you could then determine an optimal mixed strategy y for the column player without needing to solve another linear program.
- (2) Consider the following two-player normal-form game: M (3,3 2,5 2,0 2, -1 1,2 Player 1/Player 2 5,1 2,2 Cu 3,60 6-3 1,4 0.0 2; 1 B 1,4 1, 1 i. Which strategy profiles survive iterated elimination of strictly dominated strategies (including pure-strategy and mixed- strategy dominances)? ii. Find all pure-strategy Nash equilibria. iii. Final all mixed-strategy Nash equilibria (excluding the ones found in part ii)).Is the following statement true? "5 bidders with private values uniformly distributed between 0 and 1 enter a 1st price auction. Assuming that everyone is playing the symmetric equilibrium bidding strategy, the optimal bid for a bidder who makes a draw of 0.75 is 0.7."There are two oil producers, Saudi Arabia and Iran (these are countries which we are treating as players in this example). The market price will be $60/barrel if the total volume of sales is 9 million barrels daily, $50 if the total volume of sales is 11 million barrels daily, and $35 if the total volume of sales is 13 million barrels daily. Saudi Arabia has two strategies; either produce 8 million barrels daily or 6 million. Iran has two strategies; either produce 3 million barrels daily or 5 million. Assume for simplicity that marginal cost of production is zero for both countries. Here is the normal form representation of this game (where Saudi Arabia and Iran are players, they can choose strategies over what quantity to produce and they face payoffs in terms of profits). Note that the following paragraph is simply an explanation of this representation of the game. If you are already comfortable with the structure, feel free to skip to the questions below the horizontal line…
- There are two oil producers, Saudi Arabia and Iran (these are countries which we are treating as players in this example). The market price will be $60/barrel if the total volume of sales is 9 million barrels daily, $50 if the total volume of sales is 11 million barrels daily, and $35 if the total volume of sales is 13 million barrels daily. Saudi Arabia has two strategies; either produce 8 million barrels daily or 6 million. Iran has two strategies; either produce 3 million barrels daily or 5 million. Assume for simplicity that marginal cost of production is zero for both countries. Here is the normal form representation of this game (where Saudi Arabia and Iran are players, they can choose strategies over what quantity to produce and they face payoffs in terms of profits). Note that the following paragraph is simply an explanation of this representation of the game. If you are already comfortable with the structure, feel free to skip to the questions below the horizontal line…There are two oil producers, Saudi Arabia and Iran (these are countries which we are treating as players in this example). The market price will be $60/barrel if the total volume of sales is 9 million barrels daily, $50 if the total volume of sales is 11 million barrels daily, and $35 if the total volume of sales is 13 million barrels daily. Saudi Arabia has two strategies; either produce 8 million barrels daily or 6 million. Iran has two strategies; either produce 3 million barrels daily or 5 million. Assume for simplicity that marginal cost of production is zero for both countries. Here is the normal form representation of this game (where Saudi Arabia and Iran are players, they can choose strategies over what quantity to produce and they face payoffs in terms of profits). Note that the following paragraph is simply an explanation of this representation of the game. If you are already comfortable with the structure, feel free to skip to the questions below the horizontal line…Strategic bargaining - game theory! Thank you!