Problem set 5: A Dynamic Entry/Exit Game
Andrew Sweeting
November 19, 2012
Solve the following innite horizon, dynamic oligopoly entry and exit model, and then answer the
following simple questions. As part of your solutions include a simple description o
Problem Set 4: Selective Entry into Auctions
Andrew Sweeting
November 12, 2012
Due in class next week
Read Roberts and Sweeting (2011), Competition versus Auction Design
.
you to solve the model for the representative parameters that we nd.
This question
Problem Set 3: Multiple Equilibria
Andrew Sweeting
November 5, 2012
Due via Sakai next week
Two simple exercises that follow on from today lecture.
s
1. Finding Multiple Equilibria Incomplete Information Game
Consider the game in Sweeting (2009).
Suppose
Problem Set 2: Solution of a Complete Information Game
Andrew Sweeting
October 29, 2012
Due via Sakai next week
This should be a simple exercise, involving a complete information entry game like the one in
Berry.
Suppose that there are four potential entr
Entry Models: Problem Set 1
Andrew Sweeting
October 21, 2012
Due next week via Sakai
(at a minimum make sure you do Q. 1-3, Q. 4 is not too di cult)
Read Steve Berry and Joel Waldfogel, "Free Entry and Social Ine ciency in Radio Broadcasting",
RAND, 1999.
Problem Set 1: Continuous Demand Estimation
Andrew Sweeting
September 1, 2011
Due next week by the start of class
(please hand in hard copy plus email me your programs)
Download the dataset porter.dta which is on Blackboard. Questions 1-5 use this dataset
SOLUTIONS TO PROBLEM SET 3 WEEK 2
% Problem Set Code for PS 3, Nov 12
%Q1. Find all BNE of the game with payoffs
%ui1 = 0:001 + 2:25P-i1 + epsi1
%ui2 = 2:25P-i2 + epsi2
% note with positive coordination effects all
equilibria will be symmetric
% to find a
Problem Set 1 & 2
Andrew Sweeting
January 30, 2010
1. Calculate the advertising price using the market revenue and in-market listening numbers.
Repeat Figures 1-3 using the new data.
What relationships do these gures suggest?
Do the
relationships look die
% Problem Set 3 SOLUTIONS
% Complete Information Game
% A. Sweeting
% Q1. 4 firms (AA, UA, DL, WN)
% pi = Bi - D*ln(N) + ui
% BAA=0.5,BUA=0.5,BDL=0,BWN=-0.1
randn('state',2213)
% A. compute eqm distn of number of entrants
nsim=1e5;
% calculate entry profi
DYNAMIC GAME PROBLEM SET SOLUTIONS
% Dynamic Game Problem Set for Entry Class
% note: for expositional purposes I make more use of
loops than required
clear
% parameters
fixed=2;
scrap=2;
enter=3;
% State space
% first column = 0 for potential entrant, 1
Demand Module Exam Fall 2012
Andrew Sweeting
October 5, 2012
Name: .
WRITE YOUR INITIALS AT THE TOP OF ALL SUBSEQUENT PAGES
Time: 2 hours
Open Book. Please put your answers in the space provided and try to write a legibly
as possible. The number of points