Question
In: Economics
Q1. There are ten customers and two cafes A and B. Customers want to purchase from...
Q1. There are ten customers and two cafes A and B. Customers want to purchase from the cafe with fewer customers. A customer’s payoff when purchasing from cafe A is −mA, where mA is the number of customers excluding herself purchasing from A. A customer’s payoff when purchasing from cafe B is −mB, where mB is the number of customers excluding herself purchasing from B. a. Find a pure-strategy Nash equilibrium of this game. Prove that it is a Nash equilib- rium. b. Suppose each player chooses cafe A with probability 1/2 and cafe B with probability 1/2. Show that this is a (mixed-strategy) Nash equilibrium. c. Compare the expected number of customers for each cafe in the pure-strategy and mixed-strategy Nash equilibria. (Remember to show all working)
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
A firm sells its product to two groups of customers. Demand from group 1 is Q1...
A firm sells its product to two groups of customers. Demand from
group 1 is Q1 = 100, 000− 5,000P and demand from group 2 is Q2 =
140,000 − 10,000P.
a) Find the total demand that the firm faces for its product.
Explain it first using pictures, and then do the algebra. Write
your answer of the total demand as quantity as a function of price.
(Hint: draw pictures. Then add the two demands horizontally; that
is, at each...
Two customers enter a store. Independently, they make decisions to purchase or not to purchase. The...
Two customers enter a store. Independently, they make
decisions to purchase or not to purchase. The following diagram
shows how the outcomes can occur and combine with red holding of
sequence Customer 1 does not purchase and Customer 2 does not
Purchase.
The possible outcome are shown. If the event is the
number of purchases, 3 events are possible: 0 purchases, 1
purchase, and 2 purchases.
which one rule applies to the sequence of independent
outcomes of Customer 1 and...
Q1. Spartan Auto Group is going to purchase an auto parts component from one of two...
Q1. Spartan Auto Group is going to purchase an auto parts
component from one of two competing suppliers and it is going to
base its decision, in part, on the supply chain performance of the
two suppliers. The company has obtained the following data for
average raw materials, work-in-process, and finished goods
inventory value, as well as cost of goods sold for the suppliers.
Assume each supplier operates 50 weeks per year.
Supplier 1
Supplier 2
Cost of goods sold...
Q1. ABCD is going to purchase an auto parts component from one of two competing suppliers...
Q1. ABCD is going to purchase an auto parts
component from one of two competing suppliers and it is going to
base its decision, in part, on the supply chain performance of the
two suppliers. The company has obtained the following data for
average raw materials, work-in-process, and finished goods
inventory value, as well as cost of goods sold for the suppliers.
Assume each supplier operates 50 weeks per year.
Supplier 1
Supplier 2
Cost of goods sold
$8,500,000
$14,800,000...
You want to see if three different cafes yield different costs for a lunch meal for...
You want to see if three different cafes yield different costs
for a lunch meal for a week. You randomly select five measurements
from trials on an automated driving machine for each cafe. At the
0.05 significance level, is there a difference among cafes in mean
lunch meal cost? Test this claim showing all calculation steps
clearly in the Ms World file (25P) and draw an ANOVA Table for the
solution
Cafe 1 35 23 34 34 39
Cafe 2...
You want to see if three different cafes yield different costs for a lunch meal for...
You want to see if three different cafes yield different costs
for a lunch meal for a week. You randomly select five measurements
from trials on an automated driving machine for each cafe. At the
0.05 significance level, is there a difference among cafes in mean
lunch meal cost? Test this claim showing all calculation steps
clearly in the Ms World file (25P) and draw an ANOVA Table for the
solution (10P). You have to use the same steps which...
You want to see if three different cafes yield different costs for a lunch meal for...
You want to see if three different cafes yield different costs
for a lunch meal for a week. You randomly select five measurements
from trials on an automated driving machine for each cafe. At the
0.05 significance level, is there a difference among cafes in mean
lunch meal cost? Test this claim showing all calculation steps
carefully and draw an ANOVA Table for the solution.
Cafe 1 Cafe 2 Cafe 3
35 22 26
23 28 25
34 26 34...
Two shops A and B attract two types of customers: price-sensitive customers, who shop at the...
Two shops A and B attract two types of customers:
price-sensitive customers, who shop at the lower-priced shop, and
time-sensitive customers, who shop at whichever shop is on their
side of the street. A customer of either type purchases on average
10 goods. Assume there are 800 price-sensitive customers and 500
time-sensitive customers buying goods on any given day. The
wholesale price the shop pay per good is $3. For simplicity, assume
that they can charge $3.50, $4.00, or $4.50...
1. You want to see if three different cafes yield different costs for a lunch meal...
1. You want to see if three different cafes yield different
costs for a lunch meal for a week.
You randomly select five measurements from trials on an automated
driving machine for each
cafe. At the 0.05 significance level, is there a difference among
cafes in mean lunch meal
cost? Test this claim showing all calculation steps clearly in the
Ms World file (25P) and
draw an ANOVA Table for the solution (10P). You have to use the
same steps...
1. You want to see if three different cafes yield different costs for a lunch meal...
1. You want to see if three different cafes yield different
costs for a lunch meal for a week. You randomly select five
measurements from trials on an automated driving machine for each
cafe. At the 0.05 significance level, is there a difference among
cafes in mean lunch meal cost? Test this claim showing all
calculation steps clearly in the Ms World file
(25P) and draw
an ANOVA Table for the solution
(10P). You have
to use the same steps...
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