4-suggested Solutions 2015.pdf

4-suggested Solutions 2015.pdf - Economic Analysis Homework...

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Economic Analysis - Homework Assignment 3 I-Watch the video in the link below and design a game representing the incentives of the glay~rs in that & game. Elaborate whether or not the players in the video behave irrationally. S, [,..t £ t e.U £phl SO , ~D IO() , O http:// www. y outube.com / watch?v=p3 Uos2 fzlJ 0 S·te.tLl () I I D D M 2- Watch the video in the link bellow. Suppose that there are two players Nash and a friend, and that there are three girls G I, G2, and G3. Suppose that Nash and his friend have identical preferences, and prefer G I to G2 and G2 to G3 (and G 1 to G3). If both players (simultaneously) go to the same girl the payoff is zero for both, otherwise the payoffs are positive. Compute the equilibria in your game. Compare your results with the claim in the movie and elaborate. G i &2. http:// . com/watch?v = CemLiSI50x8 (3...1. 0, 0 . IA [(;1) -= 3> u. LG.2.) == 2> u{ (,3)== 1 ~ 2. ,.:, 2..1 D,O G· S 3. I 2.:. I The following two questions refer to this game: suppose that there are only two pizza shbps in a particular geographic market -
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