Eco 320 Economic Statistics, Spring 2017
Lewis Segal, Ph.D., Visiting Professor
Email: [email protected] (note the 2 in the address)
Phone: 518-618-2435 Office: BA 112B
Office Hours: Tues/Thurs 11:45-12:45 or by appointment
Class #7928: T/Th 4:15-5:35pm
Economics 405/505, Spring 2017
Introduction to Game Theory
Rui Zhao
University at Albany, SUNY
2
Nash Equilibrium: What is a plausible outcome?
A Nash equilibrium is a strategy profile in which each players strategy is optimal given the
strategies of all
Eco 405/505
Solution to homework 2.
Game Theory
Prof. Rui Zhao
1. (a) It is useful to introduce some notations. Suppose player 1 chooses k when the other two
2+k
1
k
players choose 1. The target is t = 34 2+k
3 = 4 = 2 + 4 1 for k = 2, 3, .
Then player 1s
Economics 405/505
University at Albany
Game Theory
3
Prof. Rui Zhao
Cournot Oligopoly
The outcome of the competition among oligopoly firms depends on the market demand for firms
output, the firms costs of production, the number of firms, and the way in wh
Economics 405/505, Spring 2017
Introduction to Game Theory
Rui Zhao
University at Albany, SUNY
1
1.1
Strategic Games: Introduction
Examples and General Idea
In a strategic game, each player makes a move without seeing other players moves. We can think
tha
Economics 405/505
Game Theory
Spring 2017
Prof. Rui Zhao
Homework 2. Due Thursday 02/23 at start of class.
1. (15pts + bonus points) Each of three players simultaneously announces an integer between
1 and 20, including 1 and 20. The players whose announce
Economics 405/505
Spring 2017
Game Theory
Prof. Rui Zhao
Homework 3. Due Tuesday 03/07 at start of class.
1. (12 points) Consider the n-firm Cournot Oligopoly model. Market price is given by
p = 13 Q, if Q = q1 + q2 +, ., +qn < 13, and it equals zero if Q
Economics 405/505
Spring 2017
Game Theory
Prof. Rui Zhao
Homework 1. Due on Thursday 02/09 at the beginning of class.
1. (Hawk-Dove) Two animals are fighting over some prey. Each can choose one of two
stances: passive or aggressive. Moreover,
(1) Each pre
Economics 405/505
Game Theory
University at Albany
Prof. Rui Zhao
Solution to Homework 1.
1. (Hawk-Dove) Choose payoff numbers in the matrix
Passive Aggressive
player 1
Passive
A, a
B, b
Aggressive
C, c
D, d
to satisfy C > A, B > D, A > B, C > D; b > a, c
Economics 405/505
University at Albany
Game Theory
5
Prof. Rui Zhao
Auctions
One indivisible object is being auctioned off. There are n bidders. Each bidder i = 1, ., n values
the object at vi > 0. The indices are chosen in such a way that v1 > v2 > vn >
Notice that real GDP trends upward over time but experiences ups and downs in the short run. These short-run uctuations in real GDP are otten
referred to as the business cycle 1" .
Points:1p'1
True or False: Small ups and downs in real GDP follow a consis
Which of the following probably occurred as the U.S. economy experienced increasing real GDP in 1958'? Check all that apply.
if Consumer spending increased.
it Cl The unemployment rate declined.
v' Retail sales increased.
v' [3 Industrial production decli
Suppose that for each one-percentage-point increase in the interest rate, the level of investment spending declines hv $0.5 billion. The change in the
interest rate (according to the change you made to the mone'lr market in the previous scenario) therefor
Suppose the Fed announces that it is raising its target interest rate by 3'5 basis points, or 0.?5 percentage point. To do this, the Fed will use open-
market operations to decrease 1/ the supply of if money by buying bonds from X the public.
5 Points: _
Suppose the government decldes to intervene to bring the econon'nur back to the natural level of output by usin Barnslona y-oliw.
PoInts:U,1
Depending on which curve is afected by the government po'cy, shift either the AS curve or the AD curve to reect th
PRICE (Dollars par can]
4J1]
50
E
.w
E
'34
E
E
8
E
E
P
E
Gm Alum
I15
1.!) 1.5 21 2.5 31]
QUANTI'IT [Thwsands nf cans nf beer]
3.5
III-.I.|
"I-
Mnnupnly Outcome
H
Pruflt
Suppose that in May the government undertakes the type of poqu that Is necessary to bring the economy back to the natural level of output given In
the previous scenario. In September 2820, consumer condence Increases, leading to an Increase In consumer sp
Lecture Notes, U.C. Berkeley: Econ 210a, for
January 21, 2009
Economic Growth: The Ultimate
Birds-Eye View
J. Bradford DeLong
U.C. Berkeley
The Biggest Picture
Neoclassical economists like to make the heroic and not very well-
justied assumption that at t
Problem Set 3 Answer
SOLUTIONS TO PROBLEMS
4.2
(i) H0: 3 = 0. H1: 3 > 0.
(ii) The proportionate effect on salary is .00024(50) = .012. To obtain the percentage effect, we
multiply this by 100: 1.2%. Therefore, a 50 point ceteris paribus increase in ros is
Problem Set 2 Answer
SOLUTIONS TO PROBLEMS
3.4 (i) A larger rank for a law school means that the school has less prestige; this lowers starting
salaries. For example, a rank of 100 means there are 99 schools thought to be better.
(ii) 1 > 0, 2 > 0. Both L
Problem Set 1 Answer
SOLUTIONS TO PROBLEMS
2.4 (i) When cigs = 0, predicted birth weight is 119.77 ounces. When cigs = 20, bwght = 109.49. This is
about an 8.6% drop.
(ii) Not necessarily. There are many other factors that can affect birth weight, particu
Sessions 13 and 14
Risk and the cost of capital
30017 Corporate Finance
Lecture Slides, Academic Year 2015/2016
Sessions 13 and 14:
Risk and the cost of capital
Hannes Wagner
1
30017
-1-
Corporate Finance
Sessions 13 and 14
Risk and the cost of capital
To
Case Study Guidelines
Students are required to read closely the assessment criteria
for both case study presentation and written report as listed
on the course outline (page 7 to 9).
Case Study Questions
Cost of Capital at Ameritrade
1) What factors shoul
30017 Corporate Finance
Lecture Slides, Academic Year 2015/2016
Session 17:
Case study discussion Ameritrade
Hannes Wagner
The Ameritrade case is available in the Library Course Reserves.
Go to lib.unibocconi.it Course Reserves Search for course code 3001
Analysis of Cost of Capital at Ameritrade
Executive Summary
The CEO of Ameritrade, Joe Ricketts, is looking to invest a whopping US$ 155,000,000 increasing the
marketing budget and US$ 100,000,000 in technology enhancements. As such, he must justify this