Econ 241
Answers to Homework 5
1. Read Joseph Henrichs Does Culture Matter in Economic Behavior? Summarize the
question that the article poses, and the conclusion that article reaches.
Question: Does culture matter? Do people from all cultures use the sam
Econ 241
Quiz Three
Feb. 6, 2014 Name 9 NSbJés
1. Ann and Bob play the following sequential game.
M (13.3) a /<'c>,s~t)
J, /
h \ 101qu _/I/F
\ 2 c- I - ' (1 63
g \ NH - ,3
\K- ,/ -
°\_ 5222,52)
\
5:) \
List all of Ann's strategies.
HE ué
AF 6!
A6 GG
2.
Econ 241
Answers to Homework 6
1. Ch. 3, #U4
a.
Rollback equilibrium:
Congress: Both
President: VNN
b.
Rollback equilibrium:
Congress: Neither (or A, which gives the same outcome)
President: V N VetoA
c. Congress can no longer force the President to accep
Econ 241
Answers to Homework 2
1. Complete the payoffs in the following game so that the game has the structure of a Prisoners
Dilemma.
Jerry
Cooperate
Defect
Tom
Cooperat
20, 20
0, 30
e
Defect
30, 0
10, 10
You can use any payoffs as long as T>C>D>S
2. Lo
Econ 241
Answers to Homework 13
Ch. 10, #S4
United
States
Soviet Union
Restrained Aggressive
Restrained
4, 3
1, 4
Aggressive
3, 1
2, 2
a. Consider this game when the two countries move simultaneously. Find the Nash equilibrium.
The Nash equilibrium is Agg
Econ 241
Answers to Homework 4
Ch. 4, #S7
A university is contemplating whether to build a new lab or a new theater on campus. The
science faculty would rather see a new lab built, and the humanities faculty would prefer a new
theater. However the funding
Econ 241
Answers to Homework 18
Ch. 12, #S1
Suppose that 400 people are choosing between Action X and Action Y. The relative payoffs to the
two actions depend on how many of the 400 people choose Action X and how many choose
Action Y. The payoffs are as s
Econ 241
Answers to Homework 11
Ch. 9, #S2
A local charity has been given a grant to serve free meals to the homeless in its community, but it
is worried that its program might be exploited by nearby college students, who are always on the
lookout for a f
Econ 241
Answers to HW1
Ch. 2, #S4
a. You win and get 50 with probability 0.1. You tie and get 20 with probability 0.5. You lose
and get zero with probability 0.4.
0.50(20) + 0.10(50) + 0.40(0) = 10 + 5 = 15
b. 0.50(50) + 0.50(0) = 25
c. 0.80(0) + 0.10(50
Jesus Esquivel
Econ 241
Homework 2
Due Jan. 24
1. Complete the payoffs in the following game so that the game has the structure of a Prisoners
Dilemma. (There are many correct answers to this question.)
Tom
Cooperat
e
Defect
Jerry
Cooperat
Defect
e
20, 20
Econ 241
Answers to Homework 15
1. Ch. 15, #S1.
a. The game tree looks like this:
A profitable company will concede and an unprofitable company will defy the union's threat.
The union gets an expected payoff of p(100) + (1p)(50) = 50 150p, so it is only w
Econ 241
Quiz Nine
April 3, 2014 Name ANSWEIQS
1. A union and a company are playing the brinkmanship game below.
6 Gk<gJ
MW <4 /0)
C": (30/. 610)
{Pa-Vets
l ff/KK
mil ME\ I
(my H? E
F we (a) a9 0 (we J {5;- all?)
a. What does q mean in this context?
Econ 241
Quiz Seven
March 20, 2014 Name A NSDJQKS
1. Clem is sitting at the best seat in the sports bar minding his own business when in walks the
Dark Stranger (DS). The DS would like to bully Clem to get the seat, but only if Clem is Wimp.
If Clem is To
Econ 241
Answers to Homework 3
Ch. 4, #U2
Use the minimax method to find the Nash equilibria for the games in Exercise U1.
Remember that the row players wants to maximize the payoff, and the column player wants to
minimize it.
a.
Left
1
2
2
Up
Down
Max
Ri
Econ 241
Answers to Homework 10
Ch. 7, #U10
Consider the following game:
Row
U
D
L
3, 1
0, 2
Column
R
2, 2
2, 3
a. Find and describe all pure-strategy Nash equilibria.
R is a dominant strategy for Column. If Column plays R, Row is indifferent.
The NE are
Econ 241
Answers to Homework 14
1. Make a timeline of the events of the Cuban missile crisis.
Oct. 14-15 spy planes took photographs
Oct. 16 photos shown to Pres. Kennedy
meetings of Executive Committee
Oct 20 vote; blockade won
Oct 22 TV address to the n
Econ 241
Answers to Homework 9
1. Consider the following game:
a. If Nature picks Up with probability 0.25, Middle with probability 0.25, and Down with
probability 0.5, what strategy should Carl choose?
Carl's expected payoff from A: 0.25(6) + 0.25(0) + 0
Econ 241
Answers to Homework 7
1. This is a three-round ultimatum game. In the first round there is $20 available to be split.
Player 1 makes an offer, and Player 2 can accept or reject the offer. If Player 2 rejects, there is
a second round in which ther
Econ 241
Answers to Homework 17
1. Ch. 12 #S4
Suppose an amusement park is being built in a city with a population of 100. Voluntary
contributions are being solicited to cover the cost. Each citizen is being asked to give $100. The
more people contribute,
Econ 241
Answers to Homework 19
1. Thaler, in "The Winner's Curse,' Gives real-life examples of cases where buyers suffer
form the winner's curse. Describe two such examples.
There are 4 examples in the article:
Auctioned book contracts do worse than expe
Econ 241
Answers to Homework 16
1. Suppose the US would like Russia to withdraw from the Crimea. The US can try to threaten
Russia with a military invasion of the Crimea, but this will work only if the Russians are soft.
The pure-threat game is:
a. For wh
Econ 241
Answers to Homework 20
Ch. 13, #S3
Confess
Not
Confess
10 yr, 10 yr
25 yr, 1 yr
Not
1 yr, 25 yr
3 yr, 3 yr
a. Suppose that a pair of players plays this dilemma twice in succession. Draw the payoff table
for the twice-repeated dilemma.
Always Conf