ECO 463
Introduction
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1. Suppose a law is passed that prohibits farmers from using certain chemical fertilizers
because they contaminate ground water
ECO 463
Crime
Provide brief explanations as well as your answers.
1. Suppose that the number of speeders during a holiday weekend, n, is related to the expected ne, p f , by the expression n = 3000/(p
Assessment Equilibria
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LTEX le: Assessment Daniel A. Graham, September 29, 2011
Seltens Horse, illustrated in Figure 1, is a well known extensive form (dynamic) game of incomplete information. At his
Expected Utility Analysis
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LTEX le: expectedutility Daniel A. Graham, September 8, 2011
1 Preferences for Probabilities
We now turn to characterizing preferences for lotteries with the goal of identi
ECO 463
DisputeResolution
Provide brief explanations as well as your answers.
1. A plainti and defendant estimate the same probability of plainti victory at trial, 1/2, but
disagree about the amount t
Bayesian Games
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L TEX le: BayesGame Daniel A. Graham, March 31, 2009
This is an illustration of the essential aspects of the strategic form of a game of incomplete information. There are two players,
ECO 463
Microfoundations
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1. Two people could benet by cooperating on a joint project. Each person can either cooperate at a cost of 25 dollars or nk
ECO 463
Contracts
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1. Consider a variant of Akerlofs 1970 lemons model in which the quality of a used car is
indexed by q. There are several potentia
The Cumulative Distribution and Stochastic Dominance
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LTEX le: StochasticDominance Daniel A. Graham, September 1, 2011
A decision problem under uncertainty is frequently cast as the problem of choosi
ECO 463
Torts
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1. Consider a unilateral care accident model in which the injurer can either take care at a cost
of $130 or no care. Further suppose t
ECO 463
Property
Provide brief explanations as well as your answers.
1. Suppose that a lake is collectively owned by 7 shermen. If ti denotes the amount of time
that the ith sherman spends shing per d
Nash Rehash
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LTEX le: nashrehash Daniel A. Graham, August 30, 2007
This is a summary of the essential aspects of the strategic form of a game which is characterized by a set of players, a set of acti
Sequential Games
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LTEX le: sequentialgames Daniel A. Graham, June 18, 2007
This is a summary of the essential aspects of the extensive form of a game of complete information. This form is a particula