Describe each of the five game types discussed in this chapter (prisoner's dilemma, pure coordination, assurance, battle of the sexes, chicken) in terms of the amount of tension between cooperation and self-interest of the players
What will be an ideal response?
In a prisoner's dilemma game, pursuit of self-interest dominates cooperation, so there is a great amount of tension.
In a pure coordination game, what is in the best interest of the group is in the best interest of the individual, so there is no tension.
In an assurance game, what is in the best interest of the group is in the best interest of the individual, so there is no tension.
In a battle of the sexes game, both players agree on the importance of being at an equilibrium, but each prefers a different equilibrium, so there is some tension.
In a chicken game, each player strongly prefers a different equilibrium, so there is a great amount of tension.
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A scatter diagram with the price of vacations to Mexico on the vertical axis and the price of vacations to California on the horizontal axis shows a positive relationshi
A) negative relationship, also called a direct relationshi
What is the effect of a minimum wage law in a monopsony labor market?
What will be an ideal response?
Because of the kind of externalities that tend to be generated from general R&D resources bought by firms, the equilibrium price of R&D
A) is above the optimal level, and quantity is below the optimal level. B) is below the optimal level, and quantity is above the optimal level. C) and quantity of R&D are both above the optimal level. D) and quantity of R&D are both below the optimal level. E) must fall in order for the market to reach equilibrium.
Which of the following is correct?
a. IM + X = G ? T b. I + G + T = S + X ? M c. I + G + X = S + T + IM d. I + T + G = S ? X ? IM