1- To Vote or Not to Vote Mr. and Mrs. Ward typically vote oppositely in elections and so their votes “cancel each other out.” They each gain two units of utility from a vote for their positions (and lose two unit so futility from a vote against their positions). However, the bother of actually voting costs each one unit of utility. Diagram a game in which they choose whether to vote or not to vote.

2- To Vote or Not to Vote Part II Suppose Mr. and Mrs. Ward agreed not to vote in tomorrow’ selection. Would such an agreement improve utility? Would such an agreement be an equilibrium?

3- Compatibility Microsoft and a smaller rival often have to select from one of two competing technologies. The rival always prefers to select the same technology as Microsoft (because compatibility is important),while Microsoft always wants to select a different technology from its rival. Describe the equilibrium of this game.

4- Salary Negotiation The below figure represents the potential outcomes of your first salary negotiation after graduation. Assuming this is a sequential-move game with the employer moving first, indicate the most likely outcome. Does the ability to move first give the employer an advantage? If so, how? As the employee, is there anything you could do to realize a higher payoff? Employer Low Salary Offer High Salary Offer Employee Accepts Employee gets 100 Employer gets 75 Employee Accepts Employer gets 100 Employee gets 75 Employee Walks Employer gets 0 Employee gets 0 17-2 In the final round of a TV game show, contestants have a chance to increase their current winnings of $1million to $2 million. If they are wrong, their prize is decreased to $500,000. A contestant thinks his guess will be right 50% of the time. Should he play?What is the lowest probability of a correct guess that would make playing profitable? 17-6 The HR department is trying to fill a vacant position for a job with a small talent pool. Valid applications arrive every week or so, and the applicants all seem to bring different levels of expertise. For each applicant, the HR manager gathers information by trying to verify various claims on resumes, but some doubt about fit always lingers when a decision to hire or not is to be made. What are the Type I and II decision error costs? Which decision error is more likely to be discovered by the CEO? How does this affect the HR manager’s hiring decisions? G17-1 Uncertainty Describe a decision your company has made when facing uncertainty. Compute the expected costs and benefits of the decision. Offer advice on how to proceed. Compute the profit consequences of the advice. As you are evaluating your current company, address the following decisions in your response (500 words): 1. What environmental factors and risks must be considered in the company's decision-making process? 2. Evaluate cost factors influencing the company's decision. 3. Determine strategies that would provide value to the outcome your company is seeking relating to this decision.