Suppose there is a second price sealed bid auction in which the players have the following values: v1=15, v2=4, v3=6, v4=8, v5=10, v6=6. In the symmetric equilibrium, what bid will bidder 4 submit? a. 10 b. 15 c. 4 d. 8
Q: In our daily life we use credit cards and debits cards for payments. Are credits cards considered…
A: Anything that is extensively used as a medium of exchange and accepted as payment is considered to…
Q: Suppose that there is a credit market imperfection due to asymmetric information. In the economy, a…
A: Given information fraction of b are lenders with endowment Y in the current period and 0 in the…
Q: Given the demand and supply equations below, show the burden of a 50% tax on the producers. What is…
A: Per unit tax as well as percentage tax if collected from sellers shifts the supply curve upward,…
Q: Humana Hospital Corporation installed a new MRI machine at a cost of $750,000 this year in its…
A: Revenue is the money an organization makes through its regular business operations, often from the…
Q: If the government tries to reduce the unemployment rate when the economy is not doing well and is in…
A: Fiscal policy refers to changes in government spending and taxes in order to influence the economy.…
Q: DSTV and the South African Navy differ as both of them are: a. DSTV is nonexcludable and the Navy…
A: Public goods refer to such goods that satisfy the two condition: Non-excludable and non-rivalrous.…
Q: Sally believes that any market basket on the income-consumption curve shares the same marginal rate…
A: In financial matters and especially in buyer decision hypothesis, the income-consumption bend is a…
Q: Assume that the current demand for goods depends on expectations in the IS-LM model. A monetary…
A: Answer :- Option (A) is correct :- current and expected future real interest rates are positively…
Q: Case Scenario/Problem Real World is television production company that manufactures movies. The…
A:
Q: A bank gives a loan to a company to purchase an equipment worth 10,00,000 dollars at an interest…
A: Loan amount to purchase the equipment = $1000000 Interest rate = 18% Time period for the the…
Q: Using the AD/AS model construct two graphs that show how a recession can occur? Explain how…
A: A recession is a time of declining economic execution across a whole economy that goes on for a long…
Q: A perfectly competitive firm is expected to make a $0 economic profit in the long-run. What type(s)…
A:
Q: 3. Indicate whether following statement is true or false and justify your answer. Concave…
A: Concave preferences result in the average of A and B being inferior to A. The inverse of convex…
Q: Explain the difference between a direct cost and an opportunity cost. Illustrate the difference of…
A: * Difference between a direct cost and an opportunity cost:- 1) Direct costs are expenses that need…
Q: Consider the game having the following normal form. What is the payoff of the column player when the…
A: Nash equilibrium is such an outcome in which neither of the players has an incentive to change their…
Q: Suppose that Rina makes a new cash deposit of $85,000 at her bank. Suppose that the bank is required…
A: Money kept in a bank is referred to as a deposit in the world of finance. A deposit is a deal in…
Q: Norway is one of the larges exporters of oil. At the end of 2019, the global price of oil fell…
A: Here, it is expected that the price of oil, a final good that Norway exports to the majority of…
Q: What happens when interest rates increase? SAND
A: Interest rate plays an important role in the consumption and investment decisions of people and…
Q: annel N T ney Channel Subscriber per Month $6.15 $1.52 $1.25 Price Elasticity of Demand -1.8 -2.1…
A: In economics, elasticity calculated the % change of one economic variable in response to a % change…
Q: Find price, quantity, and profit. Fixed cost: 300 MR = 64-4q mc= 4q p=64-2q
A: Given information: Fixed cost = 300 MR = 64 - 4q MC = 4q p = 64 - 2q -------------------------
Q: Let's assume that Enrique borrows $420,000 from the Bank of America and let's assume that the…
A: The real interest rate is actual earning on investment. The nominal interest rate does not tell us…
Q: If the price elasticity of demand is 0.15, and the price is doubled, this will lead to a a. 30…
A:
Q: 2
A: Export subsidy, as the name suggests is a type of subsidy for producers in the domestic market to…
Q: When the number of producers are increasing then the supply will OA. Increase OB. Decrease O C.…
A: For the course of production to begin it is fundamental that legitimate preparation and supply of…
Q: Q.1 Two firms produce homogeneous products. The inverse demand function is given by: p(x₁, x₂) =…
A:
Q: Stagflation and recession are increasingly being used to describe where the economy might be headed.…
A: The measure that depicts the general increase in price level of goods and services in an economy…
Q: In the long-run, aggregate supply is a horizontal line at the long-run price level people can…
A: However, in the long run, the level of prices has no impact on aggregate supply, which is instead…
Q: Question 22 Which of the following statements is false? a. Saving a portion of one's income in a…
A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…
Q: Suppose that Portugal and Switzerland both produce jeans and stained glass. Portugal's opportunity…
A: Given information: There are two countries, i.e., Portugal and Switzerland They produce two goods,…
Q: An exporter of handbags has just entered a new market. This exporter faces the following…
A: Given Demand function faced by exporter: P=15+4800D-2500D2 .... (1) Fixed cost =2055…
Q: 12. Which of the following is NOT a way for employees to become unionized? Select one: a.…
A: The labor unions are the organization of the workers which represents the workers as a whole. They…
Q: Explain the influence of each of the following events on the quantity of real GDP supplied and…
A: Real gross domestic product is a macroeconomic proportion of the worth of financial result adapted…
Q: Table 1 shows the demand and supply of jobs in a retail industry Quantity jobs demanded( in million)…
A: The measure that depicts various quantities of goods and services being demanded and supplied at…
Q: Who does federal minimum wage help and who does it harm? Does raising the current level of the…
A: Answer to the question is as follows:
Q: This discussion highlights the Gross Domestic Product, why it is important to measure a nation's…
A: Introduction GDP is the national accounting measure of aggregate supply of goods and services in an…
Q: 8. In a market with a monopoly that faces direct demand Q(P c(Q) = dQ- eQ² then the firm's marginal…
A: Monopoly is market where only sole seller present in the market and not other substitute available…
Q: OX Dz ROW PLAYER DY X O There are no dominated strategies for the row player. Y Z A 60, 50 100, 60…
A:
Q: 1) Describe the controversies surrounding the impact of international trade on wages and jobs.
A: Protestantism is a practice in which protectionist trade policies are followed. This policy allows…
Q: 2. Assume that the payoff matrix for the battle of the sexes game is given by Player 2 Ballet Player…
A: Let the probability that Player 1 goes to Ballet be p and Boxing be 1-p. Similarly, the probability…
Q: Suppose a consumer's satisfaction from consuming goods x and y is formulated by the equation U=X³Y².…
A: The term "Lagrange" refers to a method that may be used to determine the maximum and minimum values…
Q: L B D K
A: The deadweight loss is created in the monopoly market where the firm tends to charge higher price by…
Q: Let’s see how GDP per person can be affected by changes in the fraction of citizens who work. This…
A: Given "Every employed worker produces $50,000 worth of output" Part a) If the employment-population…
Q: mine if the The ATC is rising when the MC is below the ATC. ATC= True FC + VC Q Answer Bank All…
A: Cost, in like manner use, the financial worth of labor and products that makers and shoppers buy. In…
Q: Assume the marginal propensity to consume is 0.8. If consumer spending rises by $20 billion, then…
A: Here, given information is, Marginal propensity to consume (MPC): 0.8 Change in consumer spending:…
Q: Degree Price Discrimination. º Exercise: A monopolist faces two market segments each with a…
A: Third degree price discrimination is followed by the monopoly firm. The price is charged based on…
Q: Case Scenario/Problem Real World is television production company that manufactures movies. The…
A:
Q: (D). Under fixed exchange rates expansionary fiscal policy (e.g. an increase in G) will result in CB…
A: Fixed Exchange Rate A fixed exchange rate is a system used by a government or central bank that…
Q: Anna and Belle have a lot of common friends but the two of them are not on speaking terms. Both want…
A: Game theory helps the in obtaining the optimal solution mathematically. Nash equilibrium is the…
Q: 5. The following regression results relate to a study of computer sales (in dollars) as a function…
A:
Q: Consider the exchange rates of U.S. dollars to yen. Using figures, explain the following: 1.…
A: The price of a country's currency in relation to another country's currency is known as the exchange…
Suppose there is a second price sealed bid auction in which the players have the following values: v1=15, v2=4, v3=6, v4=8, v5=10, v6=6. In the symmetric equilibrium, what bid will bidder 4 submit?
a. 10
b. 15
c. 4
d. 8
Step by step
Solved in 2 steps
- Which of the following conditions correctly describes a Nash equilibrium when two firms are in the market? Multiple Choice n91s1. $2)2 (51. $2) for all s1 and 12(51, $2)212(51. 52) for all s2. aqls1, s2)22(s1, s2) for all s1 and a2(s1, 52) 2 n1ls1.52) for all s2. Rylsi. s2)2 als1. 52) for all s as1. 52)22(1. s2) for all sy and a2(s. s2)2 a1(s1, s2) for all s2Suppose two bidders compete for a single indivisible item (e.g., a used car, a piece of art, etc.). We assume that bidder 1 values the item at $v1, and bidder 2 values the item at $v2. We assume that v1 > v2. In this problem we study a second price auction, which proceeds as follows. Each player i = 1, 2 simultaneously chooses a bid bi ≥ 0. The higher of the two bidders wins, and pays the second highest bid (in this case, the other player’s bid). In case of a tie, suppose the item goes to bidder 1. If a bidder does not win, their payoff is zero; if the bidder wins, their payoff is their value minus the second highest bid. a) Now suppose that player 1 bids b1 = v2 and player 2 bids b2 = v1, i.e., they both bid the value of the other player. (Note that in this case, player 2 is bidding above their value!) Show that this is a pure NE of the second price auction. (Note that in this pure NE the player with the lower value wins, while in the weak dominant strategy equilibrium where both…- First-Price and Second-Price Auctions - Consider an auction of a single indi- visible object with 5 bidders, 1, 2, 3, 4 and 5, whose personal valuations (willingness to pay) for the object are v₁ = 10, V₂ = 8, 03 7, 04 5 and 5 3. The bidders simultaneously submit their bids and the winner is the one with the highest bid. Suppose that, when the highest bidder is not unique, the bidder with the smallest number (highest valuation) wins. (a) Suppose that this is a second-price auction, where the winner pays the highest bid among those from her opponents, determine whether each of the following bidding profiles is a Nash equilibrium. Explain. (i) (b₁,b2, b3, b4, b5) = (10, 8, 7, 5, 3) (ii) (b1,b2, b3, b4, b5) = (8,8, 0, 0, 0) (iii) (b₁,b2, b3, b4, b5) = (10, 0, 0, 0, 10) (b) Now suppose that this is a first-price auction, where the winner pays their own bid, determine whether each of the bidding profiles above is a Nash equilibrium. Explain. = =
- A cool kid is willing to rename himself for a profit. He decides to auctionoff the naming right. Two bidders show interest. Their valuations for thenaming right are independently and uniformly distributed over [0;100]:There are several possible ideas to design the auction. The auction runs as follows. Both bidders are invited to the sameroom; an auctioneer will start the auction with an initial price 0 and increase it by $1 every minute. The bidders are not allowed to say anything during the process, but they can walk out of the room at any moment. If one bidder walks out of the room when the price increases to p(the bidder does not need to pay), the remaining bidder will be awarded the naming right for a price of p. If both walk out when the price reaches p, the naming right is not assigned and the two bidders do not need to pay. What should the bidders do? Explain your answer.4. Consider a first-price, sealed-bid auction in which the bidders’ valuations are independently and uniformly distributed on [0,1]. Suppose that each bidder uses a strategy of b(vi) = avi. What is the symmetric Bayesian Nash equilibrium of this game when there are n bidders?Use the mixed method (Nash Equilibrium) to determine the following: What percentage of time should the maximizer play strategy H? 1. H6 17 ! 12 10 18.8% 84.6% O 15.4% 11.8%
- A cool kid is willing to rename himself for a profit. He decides to auctionoff the naming right. Two bidders show interest. Their valuations for thenaming right are independently and uniformly distributed over [0,100].There are several possible ideas to design the auction. a) The auction runs as follows. Both bidders are invited to the sameroom; an auctioneer will start the auction with an initial price 0, and increase it by $1 every minute. The bidders are not allowed to say anything during the process, but they can walk out of the room at any moment. If one bidder walks out of the room when the price increases to p (the bidder does not need to pay), the remaining bidder will be awarded the naming right for a price of p. If both walk out when the price reaches p, the naming right is not assigned and the two bidders do not need to pay. What should the bidders do? Explain your answer. (b) Both bidders are invited to submit their bids covertly (bids are non-negative real numbers).…Keep Prices Advertise Lower Prices (4.6) Firm 1 Advertise; lower prices Not advertise; lower prices Advertise; keep prices Not advertise; keep prices Firm 2 Not Advertise Keep Prices (15,5) Consider the above extensive form game. The subgame perfect Nash-equilibrium is Lower Prices (6,10) (5,11)(The All-Pay Auction). The seller has an item for sale. The valuations of the bidders are independently and identically distributed on R+ with a c.d.f. F. Find the symmetric equilibrium of an auction with two bidders in which both bidders pay their own bids but only the highest bidder wins the object. Show that each bidder’s expected payment is the same in this auction and in the first-price auction.
- Exercise 6.8. Consider the following extensive-form game with cardinal payoffs: 1 R O player pay 000 2 1 M 3 b 010 O player 3's payoff 1 2 221 2 000 0 0 (a) Find all the pure-strategy Nash equilibria. Which ones are also subgame perfect? (b) [This is a more challenging question] Prove that there is no mixed-strategy Nash equilibrium where Player 1 plays Mwith probability strictly between 0 and 1.1. Nash Equilibrium (a) Find all pure Nash Equilibria P1/P2 W X Y Z 9,9 0,7 5,5 1,1 7,0 0,0 4,2 7,7 5,5 2,4 0,0 1,1 1,1 7,7 1,1 0,0 A B C D (b) Consider the following picnic game. There are N players in the game each who can chose to bring food to the picnic or not. Let b;= {0, 1} be player i's choice of bringing food with 0 as not and 1 as yes. If they decide to bring food it comes at a cost c;(1) = 1 and no cost to bring food. Payoffs are sum of food brought minus individual cost. i. Write out the normal form matrix if N = 2 ii. If N = 2 find all pure Nash Equilibria iii. Find all pure Nash Equilibria in the general gameAn object is sold in a first-price auction – thus, the highest bidder wins the object and price is equal to the highest bid. There are two bidders, an "Odd" bidder (player 1) and an "Even" bidder (player 2). The odd bidder must bid an odd integer between 1 and 9, while the Even bidder must bid an even integer between 2 and 10. (So the strategy sets are {1,3, ...,9} and {2,4, ..., 10}.) The value of the object to the Odd bidder is 8, and value of the object to the Even bidder is 7. The payoff to the winner is the value of the object minus the price, and the payoff to the loser is 0. (a) Write the game in its strategic form. (b) Find all Nash equilibria.