The Hong Kong University of Science and Technology
Managerial Econ
ECON 3014

Spring 2017
A Note on Game Theory
Sandro Brusco
Econ 3104cfw_ Spring 2017
Managerial Economics
Hong Kong University of Science and Technology
1
Introduction
Game theory studies situations of strategic interaction among economic agents.
We have strategic interaction w
The Hong Kong University of Science and Technology
ECON 3014

Spring 2015
CH5
5. Since
, the firm is not using the cost minimizing combination of labor and
capital. To minimize costs, the firm should increase capital (and decrease labor) since the
marginal product per dollar spent is greater for capital:
.
7.
a. For a quadratic
The Hong Kong University of Science and Technology
ECON 3014

Spring 2015
ECON 4234: Labour Economics & Human Resources
HKUST, Fall 2015
Midterm Exam: October 19, 2015
Please turn off your cell phones. Cheat sheets are not allowed. You may use
calculators.
There are 7 pages in this exam (excluding the cover page). The maximum s
The Hong Kong University of Science and Technology
ECON 3014

Spring 2015
HUMA 1000: Cultures and Values
Dr Susanna Ho
Email: [email protected]
Center for Language Education
The Second Writing Workshop
By the end of this workshop you will be able to
Recognize and construct a good argument
Plan your essay
Write a good introductory
The Hong Kong University of Science and Technology
ECON 3014

Spring 2015
HUMA 1000 L3 Term Essay Titles
Please choose one of the following:
1. What are the similarities between Confucian and Mohist Conception of love?
What are the differences between them? Are they compatible? Discuss.
2. Is there life after death? You can di
The Hong Kong University of Science and Technology
ECON 3014

Spring 2015
Business Statistics, ISOM2500
Practice Final
1. In a simple linear regression, the least squares regression line is
(a) the line which makes the sample correlation as close to +1 or 1 as possible.
(b) the line which best splits the data in half, with half
The Hong Kong University of Science and Technology
ECON 3014

Spring 2015
ECON 3014 Solution to Problem Set 1
Q5.
A halfprice sale cuts the price of each and every unit in half. In contrast, a buyone,
getonefree deal does not change the relative price of any units between 0 and 1
unit. Furthermore, it makes the price of uni
The Hong Kong University of Science and Technology
ECON 3014

Spring 2015
Formula Sheet: Econ 3334
2
Y = V ar(Y ) = Ef(Y
E(XY )
X Y:
)2 g = E(Y 2 )
Y
2
Y
:
XY
= Cov(X; Y ) = Ef(X
X )(Y
Y
)g =
E(aX + bY + c) = aE(X) + bE(Y ) + c: V ar(aX + bY + c) = a2 V ar(X) + b2 V ar(Y ) + 2abCov(X; Y ):
Cov(aX + b; cY + d) = acCov(X; Y ): Th
The Hong Kong University of Science and Technology
ECON 3014

Spring 2015
ISOM3260Exercise3
Suppose we have the following relations/tables with sample data:
STUDENT
Uid
STU_ID
STU_Pwd
STU_LName
STU_FName
1001
12115666
Acgytuh
Chan
Anna
1002
13234864
Fghtssd
Lee
Mary
1003
13583345
Fghytrtgh
Li
Raymond
1004
14655667
Facdegc
Kong
The Hong Kong University of Science and Technology
ECON 3014

Spring 2015
ECON 3014 Solution to Problem Set 3
2
a. Risk loving.
b. Risk averse.
c. Risk neutral.
7.
a. With 5 bidders, n = 5. The lowest possible valuation is L = $10,000, and your own
valuation is v = $30,000.
$22,000
$22,000$10,000
5
Thus, your optimal sealed bi
The Hong Kong University of Science and Technology
ECON 3014

Spring 2015
Conceptual and computational question:
5) These two schemes are not the same. 50 percent reduction is a price reduction decreases the price of
each unit purchased. However, the buy one get one free pizza scheme is reducing only the price of the
second uni
The Hong Kong University of Science and Technology
ECON 3014

Spring 2015
Final Exam Practice 3  Econ 3014 
Spring 2017
Each question has the same weight. You will be graded on your
four best questions.
1. You are the manager of a with cost function
() = + 2 2
It takes a long time to produce, so you must decide how much to
p
The Hong Kong University of Science and Technology
Managerial Econ
ECON 3014

Spring 2017
Economics 2020b / API112
Spring 2004
Midterm Examination
1. Pure and Mixed Strategy Nash Equilibria
Consider the following game:
Player 1
U
M
D
L
1,1
0,5
0.0
Player 2
C
5,0
5,5
1,1
R
0,0
1,1
1,1
(a) Find all pure strategy Nash equilibria of this game.
(b
The Hong Kong University of Science and Technology
Managerial Econ
ECON 3014

Spring 2017
ECON3014_PS4 Solution
Ch7:
2.
[(
a.
)
(
)
(
) ]
.
b. The fourfirm concentration ratio is 100 percent.
c. If the firms with sales of $300,000 and $250,000 were allowed to merge, the
resulting HHI would increase by 960 to 5,072. Since the postmerger HHI e
The Hong Kong University of Science and Technology
Managerial Econ
ECON 3014

Spring 2017
Final Exam Practice 1  Econ 3014 
Spring 2017
Each question has the same weight. You will be graded on your
four best questions.
1. Consider an industry with four producers. Firms 1 and 2 each have
capacity 10 and a (constant) marginal cost of 10 up to
The Hong Kong University of Science and Technology
Managerial Econ
ECON 3014

Spring 2017
Final Exam Practice 4  Econ 3014 
Spring 2017
Each question has the same weight. You will be graded on your
four best questions.
1. Consider the used car market. Suppose there are equal numbers of high
and low quality cars held by sellers and the qualit
The Hong Kong University of Science and Technology
Managerial Econ
ECON 3014

Spring 2017
Final Exam Practice 4  Econ 3014 
Spring 2017
Each question has the same weight. You will be graded on your
four best questions.
1. Consider the used car market. Suppose there are equal numbers of high
and low quality cars held by sellers and the qualit
The Hong Kong University of Science and Technology
Managerial Econ
ECON 3014

Spring 2017
Final Exam Practice 2  Econ 3014 
Spring 2017
Each question has the same weight. You will be graded on your
four best questions.
1. Consider a monopolist facing an inverse demand function
= 25
and a cost function
() = 15 + 10 +
3
3
(a) How much should
The Hong Kong University of Science and Technology
Managerial Econ
ECON 3014

Spring 2017
Final Exam Practice 2  Econ 3014 
Spring 2017
Each question has the same weight. You will be graded on your
four best questions.
1. Consider a monopolist facing an inverse demand function
= 25
and a cost function
() = 15 + 10 +
3
3
(a) How much should
The Hong Kong University of Science and Technology
Managerial Econ
ECON 3014

Spring 2017
Final Exam Practice 1  Econ 3014 
Spring 2017
Each question has the same weight. You will be graded on your
four best questions.
1. Consider an industry with four producers. Firms 1 and 2 each have
capacity 10 and a (constant) marginal cost of 10 up to
The Hong Kong University of Science and Technology
Managerial Econ
ECON 3014

Spring 2017
Final Exam Practice 3  Econ 3014 
Spring 2017
Each question has the same weight. You will be graded on your
four best questions.
1. You are the manager of a with cost function
() = + 2 2
It takes a long time to produce, so you must decide how much to
p
The Hong Kong University of Science and Technology
ECON 3014

Spring 2015
The Theory of Individual
Behavior
Topic 1
Announcements
Assigned Reading:
Textbook, Chapter 4
Problem Set (Baye and Prince Ch4):
pg.195
Conceptual and Computational Questions: Q5,
Q7
Problem and Applications: Q12, Q17, Q20, Q24
Due Date: Feb 17 at 11:45pm
The Hong Kong University of Science and Technology
ECON 3014

Spring 2015
Pricing Strategies for Firms
with Market Power (Ch11)
Review of Basic Profit Maximization
Firms with market power still face a
downwardsloping demand
Implication: Tradeoff between selling more units
at a low price or selling less units at a high price.
The Hong Kong University of Science and Technology
ECON 3014

Spring 2015
Basic Oligopoly Models
(Ch9)
Introduction
Conditions for Oligopoly
Role of beliefs and strategic interaction
There is no strategic interaction in perfectly
competitive, monopoly, and monopolistically
competitive markets
Profit maximization in three oli
The Hong Kong University of Science and Technology
ECON 3014

Spring 2015
HUMA1000 L3
Spring 2014
Video Presentation Peer Evaluation
Guidelines
Overview
Length: 3 minutes at maximum
Principle: No video, no marks; No marks to your peers, no marks to you.
Marking criteria: Video Presentation Rubric
Deadlines:
Groups T3A, T3C
The Hong Kong University of Science and Technology
ECON 3014

Spring 2015
SOSC 1460 Japan: Change and Continuity
Midterm Study Outline
The key to doing well in the exam is to understand the relations
between Hofstedes concepts and their origins and expression in Japanese
society.
The final exam is not cumulative, but you should
The Hong Kong University of Science and Technology
ECON 3014

Spring 2015
The Organization of the
Firm (Ch6)
Topic 3
Introduction What is a Firm
What is firm?
A firm is an institution that hires factors of
production and organizes them to produce and
sell goods and services for profit (maximizes)
Entrepreneur is the factor of