1. Consider a model of revolutions. Society is made up of N > 1 people. Simultaneously,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. Consider a model of revolutions. Society is made up of N > 1 people. Simultaneously, each person chooses whether or not to participate. If n people participate, the probability the revolution succeeds is . If the revolution succeeds, each member of society receives the benefits of a public good worth B. In addition, each person who participated in the revolution receives a benefit R if the revolution succeeds. (This extra benefit, called a club good, might represent special access to government jobs for people who helped unseat the government once the new government is formed, or it might just represent an expressive benefit of having participated in a victorious revolution.) The cost of participating is c > 0. Assume that R > c and that B+R < N c. (a) Suppose a player believes n other people will participate. What is her expected utility from participating? (b) Suppose a player believes n other people will participate. What is her expected utility from not participating? (c) Write down a player's best response correspondence. game. (d) Identify all of the pure strategy Nash equilibria of this (e) Calculate the utilitarian payoff associated with each equilibrium. (f) Does this game have the potential for a coordination trap? Explain why or why not. (g) What feature of this game makes it a situation that exhibits strategic complementarities? 1. Consider a model of revolutions. Society is made up of N > 1 people. Simultaneously, each person chooses whether or not to participate. If n people participate, the probability the revolution succeeds is . If the revolution succeeds, each member of society receives the benefits of a public good worth B. In addition, each person who participated in the revolution receives a benefit R if the revolution succeeds. (This extra benefit, called a club good, might represent special access to government jobs for people who helped unseat the government once the new government is formed, or it might just represent an expressive benefit of having participated in a victorious revolution.) The cost of participating is c > 0. Assume that R > c and that B+R < N c. (a) Suppose a player believes n other people will participate. What is her expected utility from participating? (b) Suppose a player believes n other people will participate. What is her expected utility from not participating? (c) Write down a player's best response correspondence. game. (d) Identify all of the pure strategy Nash equilibria of this (e) Calculate the utilitarian payoff associated with each equilibrium. (f) Does this game have the potential for a coordination trap? Explain why or why not. (g) What feature of this game makes it a situation that exhibits strategic complementarities?
Expert Answer:
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date:
Students also viewed these economics questions
-
Patterson Brothers recently reported an EBITDA of $ 1 7 . 5 million and net income of $ 5 . 2 5 million. It had $ 1 . 5 million of interest expense, and its corporate tax rate was 2 5 % . What was...
-
1 What are the main components of personal financial planning? Solve What is the purpose of a financial plan? Solve Identify some common actions taken to achieve financial goals. How does a job...
-
Predictive text entry systems are familiar on touch screens and mobile phones. This question asks you to consider how the same principles might be used in a programming editor for creating Java code....
-
1. Review the six (6) goals of performance based acquisition(s); choose two and discuss how your choices can be implemented for effective management of contracts, using an actual or theoretical...
-
Fisher Brown is taxed at 40% on his income from ordinary bonds. Ordinary bonds pay 10% interest. Interest on municipal bonds is not taxed at all. (a) If the interest rate on municipal bonds is 7%,...
-
In the current year, Sandra rented her vacation home for 75 days, used it for personal use for 22 days, and left it vacant for the remainder of the year. Her income and expenses before allocation are...
-
What is the difference between required and emergent behaviors in group dynamics?
-
Carabiner Co. sold 28,000 annual magazine subscriptions for $40 during December 2012. These new subscribers will receive monthly issues, beginning in January 2013. In addition, the business had...
-
Prepare a horizontal analysis of the balance sheet. (Negative answers should be indicated by a minus sign. Round your answers to i decimal place. (I.e., .234 should be entered as 23.4).) Assets...
-
What would three factors be that would have an impact on staffing requirements in a sport and recreation business when setting staffing levels. How would each factor maximise operational and customer...
-
6. Write a function perimeter (poly) which finds the perimeter of a polygon, where the input argument poly is a list of tuples, each tuple being the (x, y) coordinates of a point on the polygon. The...
-
Depreciation on the company s wind turbine equipment for the year is $ 6 , 4 0 0 . The Prepaid Insurance account for the solar panels had a $ 3 , 4 0 0 debit balance at December 3 1 before adjusting...
-
Altoona Company began the year with 3 0 0 , 0 0 0 shares of $ 4 par common stock. On May 1 , they issued 1 5 0 , 0 0 0 shares. On July 1 , they issued 2 5 , 0 0 0 shares. On September 1 , Altoona...
-
What is the impact of worksheets on creativity? What is the impact of the subject of ecology in early childhood classrooms? What is the impact of student/teacher relationships on creativity? 2....
-
Discuss the balance between virtual and face-to-face interactions. Briefly touch on potential future trends in interpersonal communication. Summarize the key points discussed in the presentation.
-
For a given investment, the _____________ is the difference between a business's pre-money valuation and its post-money valuation. amount of the business's first year of profits current stock price...
-
Clark, PA, has been engaged to perform the audit of Kent Ltd.s financial statements for the current year. Clark is about to commence auditing Kents employee pension expense. Her preliminary enquiries...
-
What factors should be taken into account when designing a system of accounting for inflation?
-
Historical cost accounting is the worst possible accounting convention, until one considers the alternatives. Discuss this statement in relation to CPP, CCA and NRVA.
-
Discuss the effect on setting performance bonuses for staff if financial performance for a period contains both realised and unrealised gains/losses.
Study smarter with the SolutionInn App