Problem_Set_8

# Problem_Set_8 - sanctions Each wants sanctions but also oil...

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

ORIE 4350 Spring 2010 Problem Set #8 Due : Wednesday, April 28, 2010 at noon in dropbox Reminder : Write your NetID and section on the first page of your homework!!! Question 1: Textbook Section 8.9: Exercise 1 (a) and (b). Question 2: Textbook Section 8.9: Exercise 5. Question 3: A malevolent country has both nuclear aspirations and lots of oil. A committee of five other countries can vote by majority rule to impose economic sanctions on the malevolent country. If sanctions are imposed, then the malevolent country’s leader has vowed not to sell any oil to those countries that voted for sanctions. Consider the game among the other five countries where each can vote for or against
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: sanctions. Each wants sanctions, but also oil: its payoff if 4 if sanctions are imposed but it didn’t vote for them; 3 if sanctions are imposed and it voted for them; 2 if sanctions are not imposed and it didn’t vote for them; and 1 if sanctions are not imposed but it voted for them. (a) If all countries vote for sanctions, does this form a Nash equilibrium? What payoffs to the countries get? (b) If no country votes for sanctions, does this form a Nash equilibrium? What payoffs do the countries get? (c) State a pure-strategy equilibrium that yields a (strongly) Pareto-efficient outcome. Question 4 : Textbook Section 17.8, Exercise 10....
View Full Document

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern