Business, 22.02.2021 19:10 shayshayyy41

Consider an infinitely repeated partnership game between two players. In each period, the players select actions in the stage game, with common knowledge of the outcomes in all previous periods. In the stage game, player 1 selects a number x and player 2 selects a number y, where x and y are required to be in the interval from 0 to 10. Player 1's stage-game payoff is u1(x, y) = xy + 4x -x2
and player 2's stage-game payoff is
u2(x, y) = xy + 4y - y2
The players discount the future and have the same discount factor 8, which is strictly between 0 and 1.
1. Find the Nash equilibrium of the stage game.
2. Suppose that the players are interested in coordinating to select actions x = y = 10 in each period.

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 18:20

Saeed needs money to purchase tools, basic office supplies, parts to refurbish equipment, accounting software, and legal fees. believing saeed's business will be a success, an investor invests $5,000 to saeed open his business. in return, saeed agrees to repay the investor the $5,000 plus 17 percent of the profits of the business. calculate the return on investment for the investor if saeed's business makes $7,000 in profit as a total return of the business in its first year.

Answers: 1

Answer

Business, 21.06.2019 20:40

Which of the following explains why the government sets a required reserve ratio for private banks? a. to allow the government to control the interest rate charged on loans. b. to prevent banks from printing too much money and causing inflation. c. to make sure banks don't run out of money when customers make withdrawals. d. to enable the regulation of risk levels in the decision process of offering loans. 2b2t

Answers: 1

Answer

Business, 21.06.2019 21:40

Prior to its closing, income summary had total debits of $1,190,500 and total credits of $1,476,300. what purpose is served by the income summary account and what is the nature of the entries that resulted in the $1,190,500 and the $1,476,300? the income summary account is used to the accounts. the $1,190,500 represents the , and the $1,476,300 represents . the company had of $ .

Answers: 1

Answer

Business, 22.06.2019 04:00

Last week paul, ceo of quality furniture in south carolina, traveled to europe to visit customers. while overseas, paul checked his e-mail daily and showed his company's website to customers, explaining how the website will them place orders and receive merchandise more quickly. after visiting the last customer friday morning, paul was able to return to the corporate office in south carolina to meet with his board of directors that night. is the "shrinking" of time and space with air travel and electronic media.

Answers: 1

Answer

You know the right answer?

Consider an infinitely repeated partnership game between two players. In each period, the players se...

Questions