Answer Key for ECON 450 (Winter 2014)
4.1. (#1, P207) First we consider the 3 x 3 Cournot market game of figure 6.10. At every final
subgame, the unique subgame equilibrium pays (1600, 1600). Adding t
Answer Key for ECON 450 (Winter 2014)
5.1 (Page 267)(30 marks). The game involving Rembrandt's paintings is just like Caveat Emptor
(figure 10.1), with V = $20 million, W = $1 million, p(Good) = p(Bad
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ECONOMICS 450.02  Strategic Choice (Winter 2010)
MIDTERM EXAMINATION (February 11, Thursday)
Time: 80 Minutes
Total: 100 marks
1.a (5 mks). Write your name and student number on the cover of your e
Winter 2014 (updated on 12/27/2013)
Economics 450.02: Game Theory (Strategic and Cooperative Decisions)
Professor Jingang Zhao
TA: ?
810 Arts (9665217, [email protected])
824 Arts (9665201)
http:/www.u
Answer Key for ECON 343 (Summer 2017)
1.1 Let X = ACRES OF GRAINS, Y = ACRES OF VEGETABLES. The LP problems is
Max 50X + 68Y
s.t. X + Y
40X + 25Y
15X + 35Y
X, Y
( PROFIT FUNCTION )
100
( land cons
Answer Key for ECON 450 (Winter 2014)
3.1.
If IBM goes first, then the subgame perfect equilibrium is for IBM to smash, and for
Telex to stay out. If IBM accommodates, then at the final subgame Telex
Answer Key for ECON 450 (Winter 2014)
2.1. (a) Since the investor is riskneutral, then the utility function is just the identity function,
that is
u (m) = m
So, if he does not invest his money, then
ECONOMICS 450.02  Strategic Choice
FINAL EXAMINATION (April 26, Monday, 2010)
Time: 2 hours
Total: 100 marks
This is a closed book exam. Electronic devices (cell phones, blackberrys, electronic dicti
Econ 450  Problem Set (Winter 2014)
#1 (1/7, due on 1/21, Tuesday ):
The following study schedule is recommended:
(A) Complete each reading assignment by the deadline, you will be prepared for the cl
Econ 450  Problem Set (Winter 2014)
#2 (1/16, due on 2/4, Tuesday)
2.1. You have $100,000 to invest in a small business. If you open the business, the probability
is .35 that you will make $300,000 (
Econ 450  Problem Set (Winter 2014)
#3 (1/30, No due date)
This assignment will not be graded. You should do it first yourself, then check your
own answers using the solutions.
3.1 Solve Problem #1 i
Econ 450  Problem Set (Winter 2014)
#4 (2/25, due on 3/11, Tuesday)
4.1
Solve Problems #1 (use Fig 6.10 for the first part), and
#2 (use Figure 4.2  Figure 5.2 should be 4.2) in Chapter 8 (p 207).
(
Econ 450  Problem Set (Winter 2014)
#5 (3/6, due on 3/18, Tuesday)
Solve Problems #1 (30 mks), #2 (30 mks), and #6 (40 mks) in Chapter 10 (p267).
Hint to #1 Treat it as the usedcar dealers problem d
Econ 450  Problem Set (Winter 2014)
#6 (3/18, due on 4/3, Thursday)
6.1
a) Solve Problems #1 and #2 in Chapter 13 (p 346).
(5 mks each)
b) Same data as in part (a). Player 1 is risk neutral and playe