Question

In: Economics

Consider the same football situation as in the previous question, but now suppose the payoffs (probabilities...

Consider the same football situation as in the previous question, but now suppose the payoffs (probabilities of winning) are as given in the following normal form:

Defense

Defend Pass

Defend Run

Offense

Pass

0.2, 0.8

0.3, 0.7

Run

0.5, 0.5

0.4, 0.6

Do any of the teams (the one playing defense or the one playing offense) has a dominant strategy? Which one? Explain why.

Solutions

Expert Solution

OFFENSE/DEFENSE DEFEND PASS DEFEND RUN
PASS 0.2 , 0.8 0.3 , 0.7
RUN 0.5 , 0.5 0.4 , 0.6

If the player Offense plays strategy Pass, then player Defense will choose strategy Defend Pass as he gets a higher pay-off of 0.8 as compared to 0.7.

If the player Offense plays strategy Run, then Player Defense will choose strategy Defend Run as he gets a higher pay-off of 0.6 as compared to 0.5.

If the player playing Defense chooses strategy Defend Pass, then player Offense will choose strategy Run as he gets a higher pay-off of 0.5 as compared to 0.2.

If the player playing Defense chooses strategy Defend Run, then player Offense will choose strategy Run as he gets a higher pay-ff or his probability of winning is higher in this case that is 0.4 as compared to 0.3.

So, player playing Offense has a clear dominant strategy of playing Run because no matter what the Defense player is choosing, he chooses strategy Run only.


Related Solutions

Elastic unequal mass collision: We have a similar situation as in the previous question but now...
Elastic unequal mass collision: We have a similar situation as in the previous question but now truck A has mass mA and initial velocity uA. Truck B has mass mB and is initially at rest. The collision is elastic. (a) Show the subsequent velocities vA, vB in the laboratory frame are: vA = (mA − mB)uA/(mA + mB), vB = 2mAuA/(mA + mB). On the basis of these results, find the velocities in the two limiting cases: (i) mA >>...
4.UIA .Susan Prescott, using the same values and assumptions as in the previous question, now decides...
4.UIA .Susan Prescott, using the same values and assumptions as in the previous question, now decides to seek the full 2.600% return available in US dollars by not covering her forward dollar receipts -- an uncovered interest arbitrage (UIA) transaction. Assess this decision. Assumptions Value SFr. Equivalent Arbitrage funds available $1,000,000 SFr.994,000 Spot exchange rate (SFr./$)                    .9940 3-month forward rate (SFr./$)                    .9910 Expected spot rate in 90 days (SFr./$)                    .9940 U.S. dollar 3-month interest rate 2.600% pa Swiss franc3-month interest...
Australian corporate bonds can now be issued with the same prospectus as for previous issues, simplifying...
Australian corporate bonds can now be issued with the same prospectus as for previous issues, simplifying the process. As a result, the corporate bonds' yield __________ while the stock of bonds in the financial system ___________. A. decreases; increases B. decreases; decreases C. increases; increases D. increases; decreases
Suppose the probabilities of having a boy or a girl child arethe same—both are 50%....
Suppose the probabilities of having a boy or a girl child are the same—both are 50%. Answer the following questions about a couple that has two children, showing any calculations.a. What is the probability that the couple has two girls?b. The eldest of the two children is a girl. Given this, what is the probability that the couple has two girls?c. At least one of the children is a girl. What is the probability that the couple has two girls?Your...
**SHOW ALL WORK IN EXCEL QM** Problem-5: In the previous problem suppose the sale of football...
**SHOW ALL WORK IN EXCEL QM** Problem-5: In the previous problem suppose the sale of football programs described by the probability distribution only applies to days when the weather is good. When poor weather occurs on the day of a football game, the crowd that attends the game is only half of capacity. When this occurs, the sales of programs decreases, and the total sales are given in the following table: Number (in 100s) of Programs Sold Probability 12 0.25...
From a previous Chapter there is a discussion of variable costing and absorption costing. Now, consider...
From a previous Chapter there is a discussion of variable costing and absorption costing. Now, consider the following scenario: Assume that you are a cost accountant in a small manufacturing firm. You are member of the Institute of Management Accountants (IMA) and have recently become a Certified Management Accountant (CMA). The firm’s stock is publicly-traded on the New York Stock Exchange. The corporation reports its annual financial statements in conformity with United States generally accepted accounting principles (US GAAP) and...
Now do the same thing but for a situation where the firms initially have losses (perhaps...
Now do the same thing but for a situation where the firms initially have losses (perhaps because market demand had shifted down as a result of changing preferences). Explain how exit of firms moves the situation toward the same long run equilibrium as in #1.
Consider the linear program given below (almost the same as the previous problem - the only...
Consider the linear program given below (almost the same as the previous problem - the only difference is that the right hand side of the first constraint has been increased from 10 to 11): Decision variables: A, B, C, and D Objective: maximize 3 A + 5 B + C +2 D Constraints: A + B + C + D <= 11 A – B = 0 A + B – C – D <= 0 Solve it using Excel....
Given the below pension assumptions (same as the previous question), answer the following question. Starting salary...
Given the below pension assumptions (same as the previous question), answer the following question. Starting salary 77,000 Annual salary increase 2.00% Years of employment 30 Vesting rate 1.75% Return on investments 6.00% Years of retirement 20 What is your anticipated retirement benefit each year?
This is the same information as the previous question. Martinez Cake Company sells birthday cakes and...
This is the same information as the previous question. Martinez Cake Company sells birthday cakes and fruit cakes in bulk through its Internet business. Estimated overhead costs for the coming year total $330,000. The accountant for Martinez identified the following information in preparation for an activity-based costing system. Activity Allocation Base Overhead Cost Purchasing Number of purchase orders $82,500 Processing Number of units processed $198,000 Sales Number of sales orders $49,500 The estimated activity level for each type of cake...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT