Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3. Netix with unlimited sharing Netix is an American media-services provider and production company headquartered in Los Gatos, California. The company's primary business is its

image text in transcribed
3. Netix with unlimited sharing Netix is an American media-services provider and production company headquartered in Los Gatos, California. The company's primary business is its subscription-based streaming service which offers online streaming of a library of lms and tv programs. There is a society of six individuals, {1, 2, 3, 4, 5, 6}, who are connected in a social network as below. If there is a link between two individuals, then that pair of individuals are friends. If there is no link between two individuals, then that pair are not friends. All individuals like Netix. Specically, if someone views Netix they get a benet of 1. However, Netix is costly which is bad. To purchase a Netix account costs :1: E (0, 1). Netix allow multiple devices to stream simultaneously. This means that if some indi- vidual purchases a Netix account, then they will share with all of their friends. Each individual has strategy set {0, 1} where 1 means to purchase a Netix account and 0 means to not purchase. The payoff to individual 3' depends directly on their own action and the actions of their friends. Writing 5,- for the strategy of person i, and s_,; for the vector of strategies of everyone other than 3', the payoff to person i, ir(s,;, s_,-) is \"(O 8 ) _ 1, if some friend chose to purchase an account 3 ' '1 _ 0, if no friend chose to purchase an account ir,(1,s_,-) = 1 c, for all s_, Answer the following: (a) 5 marks Does any player have a dominant strategy (strictly or weakly)? (b) 5 marks Does any player have a dominated strategy (strictly or weakly)? (c) 5 marks Find all the pure strategy nash equilibria. (Either write cut mathematically or depict graphically.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

What Every Environmentalist Needs To Know About Capitalism

Authors: Fred Magdoff, John Bellamy Foster

1st Edition

1583672419, 9781583672419

More Books

Students also viewed these Economics questions

Question

How does the law protect patents?

Answered: 1 week ago

Question

What did Rogers mean by unconditional positive regard?

Answered: 1 week ago