PS17 - Intermediate Microeconomics, Winter 2008 Problem Set...

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Intermediate Microeconomics, Winter 2008 Problem Set No 17 due: Wednesday, March 26; Thursday, March 27 Reading: To prepare for the next lecture, please read: Chapter 13, 483-486 (Monopolistic Competition), Chaper 14, 513 -514 (Repeated Games) Solve the following problems from the book, Chapter 13: 16 , 34 W , Q1. Reconsider question 3 from Problem Set 16 (Guard for a Mall). Suppose whether to hire zero, one, two, or three guards and then store B chooses whether to hire zero, one, two, or three guards. a) Find all subgame perfect equilibria. For each subgame perfect equilibrium, write down the complete equilibrium strategy of store B, i.e., write down how many guards B would hire, after A has hired X guards. b) Find some additional Nash equilibria in which A hires a di/erent number of guards. Do not forget to write down the complete strategy of store B . Q2. Suppose American and United compete on the ORD-DTW route in a
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This note was uploaded on 12/10/2011 for the course ECON 401 taught by Professor Burbidge,john during the Winter '08 term at Waterloo.

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PS17 - Intermediate Microeconomics, Winter 2008 Problem Set...

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