Question
Two people enter a bus. Two adjacent cramped seats are
free. Each person must decide whether to sit or stand. Sitting alone is more comfortable than sitting next to the other person, which is more comfortable than standing. Suppose that each person cares only about her own comfort. Model the situation as a strategic game. Find its Nash equilibrium (equilibria?).Solution
There exist only one pure strategy Nash equilibrium (sit, sit) and the argument is same as that of Prisoner’s Dilemma discussed in theory.
Consider the following production function
Y = F(K,AL) = K1/3(AL)2/3
Calculate the steady state level of output per ...
A card is drawn randomly from a deck of ordinary playing cards. You win Rs.900 if the card is a spade or a king. What is the probability that you will w...
The primary regulatory objective of SEBI in the context of 'Mutual Funds' is to:
Which theorem intends to show that the change in commodity prices changes the distribution of real incomes between capital and labor?
A budget that has both capital receipts and capital expenditure is called:
The Indirect Utility function is = 12M3/27PxPy, where M is the income, P(x) is the price of commodity X and P(y) is the price of commodity Y....
Calculate personal income:
...
Laffer curve predicts what happens as tax rate rises?
The statement "results are accurate within +/-4 p.p., 95% of the time" refers respectively to:
From the information provided in the following table, calculate the GNPmp
