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ect an offer of zero units, but at an offer of one unit they will accept it if they are self-interested and risk-neutral because it is one more unit than they would be getting if they rejected the one unit offer.
c) The subgame perfect Nash equilibrium does not match the actual behavior at all. The different assumptions we can make in part a to explain this is basically that if people feel that the amount they are getting is unfair, they will try to hurt the other person as well as themselves by making sure nobody gets anything.
2- In this situation, the drug-dealer’s best option is to go to the park because if the officer is at the park the dealer will still make 50 deals whereas if they are both on the street he will only make 30 deals. The officer can do better if she stays on the street but knows the drug dealer will do better at the park given that they both choose the same place. Therefore, the most likely payoff would probably be the bottom right square where 50 deals are made and 120 are stopped. However, Player Two has a bigger payoff when they are at different locations. Because of this, a mixed-strategy Nash equilibrium shows that the dealer would average about 100 deals, meaning the officer would be able to stop an average of 70 deals.
If Player Two is self-regarding, Player One will benefit more from sending payment if Player Two delivers (P,D). In this situation Player One will also make a profit if they don’t send payment and Player Two delivers (NP, D). In the other two situations Player One & Player Two will benefit equally (NP,K) and Player One will lose in the payment – non delivery situation (P,K).
If Player Two is reciprocal, Player Two stands to benefit more from a payment and delivery situation (P,D), as well as benefiting more from a payment and non-delivery situation and a non-payment, non-delivery situation (NP, K). The only situation where Player one benefits more is where they don’t pay but the item is still delivered (NP,
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For most people, for whom driving is a necessary part in their daily lives, even an increase in the price of petrol or diesel would not stop them from driving. In the case of cabbages, as there are many alternatives available, it is not a necessity for people, an increase in its price would result in an increased fall in the quantity demanded.
When the difference is negative, the country is said to be having a trade deficit and when the difference is positive it is said to have a trade surplus. The term net capital outflow refers to the net flow of funds being invested by a country in other countries within a certain period of time (Lukes, 1959).
However the system encountered certain difficulties. Firstly, needs and wants often did not coincide and thus it became difficult to exchange goods and products. There was a lack of a common measure that could measure the value of the goods for exchange. Thus the entire process of exchange was difficult.
In addition, it can help us ascertain mechanisms which would be most applicable to modern business conditions. Furthermore, we believe that ascertaining the type of recession is also an important factor for a business as the degree of economic deterioration will determine the mechanisms for survival that have to be implemented.
Opportunity costs helps make more informed decisions and provides a clear idea of what can be gained instead of investing in one place (McConnell, Brue, & Flynn, 2008). Consumers use this as a means to ensure that their investments are put to
Economic growth is experienced basically when there is seen an increase in the production capacity of goods and services in an economy. (Encyclopædia Britannica, 2008) It is also seen as the increase in the standard of living of the society as a whole.
However, the determination of the potentiality of a foreign market would be based on the information regarding that market collected (Iacobucci & Churchill, 2010.p.75-86). The best options in collecting such market information would be the conduct of market
The population in UK and Australia is low allowing for them to have a high level of GDP per capita while that of Russia and Indonesia having the constant amount of population that gives the GDP and GDP per capita the same impacts in
This is because of several forms of evidence.
First of all, early Greek and Roman writings that survived to this day alludes a lot of things to Ancient Egypt. There is evidence that the people who lived in Egypt and in the Nile Basin over 2,000 years ago were
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