Homework 1 - plays pass, the defense plays blitz, and the...

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ECON 398 HOMEWORK 1 Professor Ozdenoren 1) For the following games. List the strategies available to all players. What is the equilibrium outcome? What are the equilibrium strategies? a) 0,4 -1,-1 2,2 1 2 Out In Accomodate Price War b) U D L R L R l r 1 1 2 2 1,4 5,2 3,3 2,0 6,2 2) Consider the following football example: The Offense can choose to run or pass, and the defense can play run defense, play pass defense, or blitz. The game is sequential: the offense goes first, then the defense, and finally, IF (AND ONLY IF) the defense plays Blitz, the offense can choose to change their play from run to pass. The payoffs are: (2,-2) if offense plays run and defense plays run; (5,-5) if offense plays run, and defense plays pass; (15, -15) if the offense plays run, the defense plays blitz, and the offense stays with the run; (-5, 5) if the offense plays run, the defense plays blitz, and the offense changes to pass; (8, -8) if the offense plays pass, and the defense plays
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run; (3, -3) if the offense plays pass, and the defense plays pass; (0,0) if the offense
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Unformatted text preview: plays pass, the defense plays blitz, and the offense stays with the pass; and (10, -10) the offense plays pass, the defense plays blitz, and the offense switches to the run. if How many strategies do offense and defense have respectively? What is the nses ) Consider the following bargaining scenario. Player A and player B are bargaining equilibrium move for the offense at its initial decision node? What is the defe equilibrium strategy? 3 over an ice cream cake. Player A and B make alternating offers and Player A makes the first offer. If at any stage an offer is accepted they share the cake according to the accepted offer. In the first round 1/7 th of the cake melts. In the second and third and fourth rounds 2/7 th of the cake melts. Write down both players equilibrium offers at each stage of the bargaining game. What is the equilibrium split of the cake?...
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This note was uploaded on 04/02/2008 for the course ECON 398 taught by Professor Emre during the Spring '07 term at University of Michigan.

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Homework 1 - plays pass, the defense plays blitz, and the...

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