More ECO4400 practice problems

More ECO4400 practice problems - Worker can go to college...

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More practice problems: Normal Form Game: Find all NE of: X Y Z A 6,2 3,7 6,4 B 4,1 9,2 2,9 C 8,8 0,7 1,1 Extensive Form Game: Find all SPNE of:
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Repeated game: Find an SPNE of the repeated game where the stage game X Y X 3,3 0,8 Y 8,0 2,2 is repeated with probability 0.5. What is the smallest p that will ensure grim trigger is an SPNE? Continuous game: Player 1 chooses x, Player 2 chooses y. Player 1’s payoff is: x + xy – x^2, Player 2’s payoff is: y + xy – y^2. Find a NE. Signaling game: Worker is lazy with prob. 0.5 and hard working with prob 0.5.
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Unformatted text preview: Worker can go to college or not. The cost of college is 200 for a lazy person, and 50 for a hard working person. A Manager observes whether the worker went to college and either hires or fires him (but doesnt know type). The manager gets a payoff of 200 if he hires a hard worker, 0 if he hires a lazy guy, and 150 if he fires the guy (either type). The worker gets a benefit of 150 if he is hired, 0 if he is fired. Find a PBNE....
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More ECO4400 practice problems - Worker can go to college...

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