What is the answer it's not factor

Consider two competing firms in a declining industry that cannot support both firms profitably. Each firm has three possible cho

yaroslaw [1]

Answer:

a) attached below

b) ( T,T )

c) The Pure-strategy Nash equilibria are : ( N,E ) and ( E,N )

d) The mixed-strategy Nash equilibrium for Firm 1 = ( 1/3 , 0, 2/3 )

while the mixed -strategy Nash equilibrium for Firm 2 = ( 1/3 , 0, 2/3 )

Step-by-step explanation:

A) write down the game in matrix form

let: E = exit at the industry immediately

T = exit at the end of the quarter

N = exit at the end of the next quarter

matrix is attached below

B) weakly dominated strategies is ( T,T )

C) Find the pure-strategy Nash equilibria

The Pure-strategy Nash equilibria are : ( N,E ) and ( E,N )

D ) Find the unique mixed-strategy Nash equilibrium

The mixed-strategy Nash equilibrium for Firm 1 = ( 1/3 , 0, 2/3 )

while the mixed -strategy Nash equilibrium for Firm 2 = ( 1/3 , 0, 2/3 ) since T is weakly dominated then the mixed strategy will be NE

Assume that P is the probability of firm 1 exiting immediately ( E )

and q is the probability of firm 1 staying till next term ( N ) ∴ q = 1 - P.

hence the expected utility of firm 2 choosing E = 0 while the expected utility of choosing N = 4p - 2q .

The expected utilities of E and N to firm 2 =

0 = 4p - 2q = 4p - 2 ( 1-p) = 6p -2 which means : p = 1/3 , q = 2/3

4 0

2 years ago

What is the difference

azamat

Answer:

4

Step-by-step explanation:

6 0

3 years ago

Put the following in order from least to greatest .

postnew [5]

90.89, 90.9, 98.9, .09

67.33, 67.03, .87, .09

8 0

3 years ago

Given: 6g+4a=7a<br> prove: g/a=1/2

Likurg_2 [28]

Answer:

Step-by-step explanation:

6g + 4a = 7a

⇔ 6g = 7a - 4a

⇔ 6g = 3a

Divide both side by 6a

⇒ $\frac{6g}{6a} = \frac{3a}{6a}$ ⇔ $\frac{g}{a} = \frac{1}{2}$

I hope this will help you.

3 0

3 years ago

Scores on the math portion of the SAT are believed to be normally distributed and range from 200 to 800. A researcher from the a

Doss [256]

Using the z-distribution, it is found that she should take a sample of 46 students.

<h3>What is a z-distribution confidence interval?</h3>

The confidence interval is:

$\overline{x} \pm z\frac{\sigma}{\sqrt{n}}$

The margin of error is:

$M = z\frac{\sigma}{\sqrt{n}}$

In which:

$\overline{x}$ is the sample mean.

z is the critical value.

n is the sample size.

$\sigma$ is the standard deviation for the population.

In this problem, we have a 95% confidence level, hence $\alpha = 0.95$ , z is the value of Z that has a p-value of $\frac{1+0.95}{2} = 0.975$ , so the critical value is z = 1.96.

Scores on the math portion of the SAT are believed to be normally distributed and range from 200 to 800, hence, by the Empirical Rule the standard deviation is found as follows:

$6\sigma = 800 - 200$