AK_HW5 - Answer Key for Homework #5 Question 1 (a)...

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Answer Key for Homework #5 Question 1 (a) Microeconomics, Macroeconomics. (b) Macroeconomics. (c) (Microeconomics, Macroeconomics) and (Macroeconomics, Microeconomics). (d) Macroeconomics. (e) (Macroeconomics, Macroeconomics). No, we can reach to (10,10) payoff. (f) Yes, the dominant strategy for Prentice Hill is Macroeconomics. Yes, the domi- nant strategy for McGraw Hall is Macroeconomics. (g) Microeconomics. (h) (Microeconomics, Microeconomics) and (Macroeconomics, Macroeconomics). Yes, we can reach to (10,10) payoff at (Microeconomics, Microeconomics). (i) Yes, the dominant strategy for Prentice Hill is Microeconomics. Yes, the domi- nant strategy for McGraw Hall is Microeconomics. Question 2 (a) Action: Enter, Not. Strategy: (Enter, Enter), (Enter, Not), (Not, Enter), (Not, Not). (b) “Not” is the best response, since it gives larger payoff. (c) The (subgame perfect) Nash equilibrium is ($400, (Enter, Not)). (d) Although Samsumg announced uncompromising entry, “Not enter” is a best
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This note was uploaded on 11/02/2011 for the course MATH 201 taught by Professor Doolittle during the Spring '11 term at Hawaii.

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AK_HW5 - Answer Key for Homework #5 Question 1 (a)...

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