Problem Set
Econ 306
1. Find all the pure and mixed equilibria of the following game (borrowed
from a problem set by Jorgen Weibull):
T
B
L
2, 7
2, 0
R
0, 0
3, 1
Use the gambit technique - rst delete strictly dominated strategies, then
check for pure equi
Centipede Game
Here is the extensive game we discussed in class:
1
l
r
2
l
1, 0
r
1
0, 2
1
r
2
1
3, 1
2, 4
r
3, 3
Figure 1: Centipede Game
Player 1 moves rst, and can end the game by choosing l. Alternatively, he
can pass the move on to 2 who has the same
Cournot Oligopoly
The Cournot1 oligopoly model is the most popular model of imperfect competition.
It is a model in which the number of firms matters, and represents one way of
thinking about what happens when the world is neither perfectly competitive, n
Two Period Games
So far, we have considered only games that are played simultaneously. Several of
these games, notably the price cutting and apartment cleaning games, are
actually played over and over again. Other games, like the bank location game,
may o
Reading on Directed Search
Michael Peters
February 11, 2014
This reading will describe a model that is used extensively in macroeconomics to understand labor markets. The model is a part of a larger
literature on search and matching. Ill explain the model
DEFERRED ACCEPTANCE
The point of this note is to take you through the calculations involved when
using the deferred acceptance algorithm. Please read the papers associated with
the links on the web page for motivation and applications.
Well use the exampl
Games
The theory of games provides a description of games that fits common games like
poker or the board game Monopoly but will cover many other situations as well.
In any game, there is a list of players. Games generally unfold over time; at each
moment
Econ 306 - Midterm - Peters
1. Find all the
L
A
4, 3
B
0, 1
C
0, 0
D 1, 0
Answer:
Nash equilibria of the following game:
M
R
0, 0 1, 1
1, 0 10, 0
3, 4 1, 1
3, 1 5, 0
2. Find the subgame perfect equilibria of the following game. Is there a Nash
equilibrium
End of Term Problem set
Problems added 2014
Econ 306
1. (Directed Search) Suppose there are three workers who are all currently
employed at jobs paying w . Two new rms, named 1 and 2, enter the
market and they want to hire these workers away from their ex
Position Auctions
One application of auctions which has become increasingly important over the last few years is their application to online advertizing.
Hallerman1 estimates that online advertizing revenues in the US in 2007
were at least $21 billion. (?
Food and Resource Economics 306
Sample Midterm Exam 2015
Rick Barichello
I.
Multiple Choice: Choose which of the following statements are true and circle (write down)
that letter. The number of true statements is between one and four. 1.5 marks are given