Chapter 15 Problems.docx - Chapter 15 Problems 15-1 To Vote...

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Chapter 15 Problems 15-1 To Vote or Not to Vote Mr. and Mrs. Ward typically vote oppositely in elections and so their votes “cancel each other out.” They each gain two units of utility from a vote for their positions (and lose two units of utility from a vote against their positions). However, the bother of actually voting costs each one unit of utility. Diagram a game in which they choose whether to vote or not to vote. Mrs. Ward Vote Don’t Vote Mr. Ward Vote -1, -1 1, -2 Don’t Vote -2, 1 0, 0 15-3 Compatibility Microsoft and a smaller rival often have to select from one of two competing technologies. The rival always prefers to select the same technology as Microsoft (because compatibility is important), while Microsoft always wants to select a different technology from its rival. Describe the equilibrium of this game.
15-4 Salary Negotiation

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

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