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3 years ago

"in game theory, a dominant strategy ______ exists."

2 answers:

6 0

<span>Game theory is the study of math and logic behind problems and cooperation. It has logical steps that can be used in making life choices. In game theory, a dominant strategy of Nash equilibrium exist. Nash equilibrium is reach when players choose their own dominant strategy in no unilateral profitable deviation from any other players. In addition, no players would take action as long as other players remain the same. Therefore, Nash equilibrium is self-enforcing strategy. </span>

kati45 [8]3 years ago

3 0

<em>in-game theory, a dominant strategy </em><em>Nash equilibrium</em><em> exists. </em>

<h2>Further explanation </h2>

As a theory derived from mathematics, of course game theory is also closely related to non-social sciences such as computer science, electronics, to physics. While from the standpoint of social science, it can be said that game theory seeks to explain human interactions and behavior (social science) from the rational side. In economics, the game theory explains business behavior, for example in marketing competition between two or several large companies that dominate the market (cartel).

<h3>In the following we discuss some basic interaction strategies as an introduction to game theory: </h3>

Dominant strategy

In the dominant strategy, each player has 1 optimal choice that is not dependent on the choice of other players. In this case, A will always choose "bottom" because rewards 2 ("bottom" - "left") or 1 ("bottom" - "right") are never worse than 1 ("top" - "left") or 0 ("top" - "right"). Likewise, for B, choosing "left" will never be worse than choosing "right", regardless of choice A. Thus, "down" and "left" are the dominant strategies for each player A and B.

Nash Balance (Nash Equilibrium)

When a dominant strategy does not occur, a balance can still be achieved if each player can choose optimally based on the expectations of the actions taken by other players. In the above situation, if player A chooses "top", the optimal choice for B is "left". Conversely, if B chooses "left", optimal choice A is "top". Thus, the "top" - "left" (yellow cell) is also a position of balance, which is called the Nash balance (Nash equilibrium). Thus, Nash's balance is a pair of strategies when choice A is the optimal choice for the condition of choice B, and vice versa.

The prisoner's dilemma

Another problem in Nash's balance is that if an equilibrium position is reached, the two parties make a choice that is not the most optimal. This condition is known as the prisoner's dilemma. We imagine, there are 2 prisoners (suspects) who were investigated separately without being able to guess at each other's choice of action.

There are still many variations of strategies in game theory and their assumptions that were not explained here. The real game theory application is very close to daily life. <em>Have you ever faced situations such as prisoners' dilemmas or other strategic interactions? Could there be a way of taking a solution that hasn't been conceived by game theory formulators until now? </em>

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Theory game brainly.com/question/7582314

Nash Equilibrium brainly.com/question/7582314

Details

Class: College

Subject: Business

Keyword: Nash, Theory, Equilibrium

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4 0

2 years ago

In the short run, an unexpected increase in prices will:.

satela [25.4K]

Answer:

will improve the profit margins of firms and thereby induce them to expand output in the short run.

6 0

2 years ago

In a production budget, if the number of units in finished goods inventory at the end of the period is less than the number of u

ivolga24 [154]

Answer: False

Explanation:

In a production budget, when the number of units in finished goods inventory at the end of the period is less than the number of units in the finished goods inventory at the beginning of the period, this simply means that the expected number of units sold is higher than the number of units that was produced for that particular period.

Fro example, let's assume that the beginning inventory is 20,000 and the units of goods produced is 25,000 while the units sold is 27,000. Then, the ending units will be:

= 20,000 + 25,000 - 27,000

= 18,000

As we can see from the example, the number of units in the finished goods inventory at the end of the period(18,000) is less than the number of units in the finished goods inventory at the beginning of the period(20,000), the expected number of units sold(27,000) is more or higher than the number of units to be produced(25,000) during the period.

8 0

3 years ago

On January 1,2016, the Ruffin Corporation issued $40,000 par value, 4%, four-year bonds that mature on December 31, 2019. Ruffin

Sergeu [11.5K]

Answer:

Face Value of the Bond = 40000

Effective Interest = 4%

Coupon rate = 4%

Years to Maturity = 4

Quarterly Coupon rate = 1%

No. of compounding periods = 16

Present Value of Face (40000*.85282) $34,112.85

Present Value of Interest Payments (800*14.7179) <u>$5,887.15</u>

Total $40,000.00

Face Value of Bond <u>$40,000.00</u>

Initial Amount of Discount/(Premium) <u>$0.00 </u>

Note: As the bonds are issued at par, there is premium or discount.

7 0

3 years ago

In the traditional labor model, the amount that an additional worker hired adds to the revenues of the firm is called the _____

Aloiza [94]

Answer:

The correct answer is marginal product.

Explanation:

The marginal product of labor is the change in the output or total product because of hiring an additional unit of labor. In other words, the amount that an additional worker adds to the revenue is its marginal product.

It can be expressed as,

$MP_{L} \ =\ \frac{\Delta Y}{\Delta L}$

The marginal product of labor depends on the quantity of capital and labor already employed.

5 0

3 years ago