Assignment 4

Assignment 4 - general idea is that Bill should swat the...

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Economics 146 – Fall, 2007 Homework Assignment 4 – due December 6, 2007 Last update: 11/28/07 Reminder for problems 2 and 3: a pure strategy is a complete instruction set for what a player should do at every possible contingency he might encounter in a play of the game. 1. By means of the “streamlined” transportation algorithm find a solution for the trans- portation problem given by the cost/supply/demand matrix: 1 2 3 4 1 10 5 6 7 28 2 8 2 7 6 25 3 9 3 4 8 47 15 20 30 35 Here, the entries of the left-most column are the index numbers of the plants(sources), and the entries of the top-most row are the index number of the markets(destinations). The entries of the right-most column are the supplies at the three plants, and the entries of the bottom-most row are the demands at the four markets. The entries in the matrix proper are transportation costs: c ij is the cost to transport one unit of the of the commodity from plant i to market j . 2. Al and Bill play a game. Al has a real fly and a fake fly. Bill has a fly-swatter. The
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Unformatted text preview: general idea is that Bill should swat the real y. Al chooses the real y or the fake y, puts it on the table and conceals it with his hand. Meanwhile Bill decides whether or not he will swat the y. At a signal Al removes his hand and Bill swats or not. If Bill swats he wins one dollar if the y was real and loses one dollar if the y was fake. If Bill does not swat and the y was real, there is no payment and the game ends because the y ies o. If Bill does not swat and the y was fake, they play the game once more this time for double stakes, and this time if Bill does not swat the fake y Bill wins two dollars and the game ends. Make Al player I. (a) List the pure strategies for each player and give the payo matrix. (b) Find a solution for this game. 3. Solve the following matrix game parametrically. Give the solutions as a function of t. " 0 2 t 1 #...
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This note was uploaded on 09/23/2008 for the course ECON 146 taught by Professor Farmer during the Fall '07 term at UCLA.

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