Econ398_HW4 - package of ice-cream). Assume the value of...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ 398 Homework 4 Due Friday, February 20, 2009 1) Dixit & Skeath, Chapter 6, problem 1 2) This is a variant on the War of Attrition discussed in class. In this example, each player places no value on the time spent waiting for the other player to concede (so that waiting isn’t costly), but the object loses value as time passes (like a rotting animal carcass, or a melting
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: package of ice-cream). Assume the value of the object to each player after units of time is while a 50% chance of obtaining the object is /2 . Specify players, strategies, and payoff functions (carefully) for this game. Graph out the payoff functions, construct the best response curves, and find the Nash Equilibria of this game....
View Full Document

This note was uploaded on 03/13/2009 for the course ECON 398 taught by Professor Emre during the Spring '07 term at University of Michigan.

Ask a homework question - tutors are online