Practice%20Problems%20for%20Midterm-%20answer%20key

Practice%20Problems%20for%20Midterm-%20answer%20key - 4. a)...

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Practice Problems for Midterm- Answer Key (Try to answer the questions before looking at the key). 1. EU(A) = 6.9 EU (B) = 10 A rational actor should choose Choice B- the expected utility is higher. 2. EU(attack) = -250; No, it is not rational for the state to attack EU(attack) = 125; Yes, it is rational for the state to attack 3. a) (C;C): both cooperate b) (D;D): both defect c) 2 equilibria- (C;C) and (D;D): both cooperate or both defect
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Unformatted text preview: 4. a) US delays cuts; USSR accelerates buildup b) US makes major cuts; USSR makes major cuts 5. Calculate Pres. Obamas expected utility for a surge: EU (Surge) = (.35)(25,000) + (.65)(-12,000) = 950 He would call for a surge because the expected utility of a surge is greater than the utility of the status quo....
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