) If you were offeredto split$5million, would you acceptthe following proposal?You are a player A;...

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) If you were offeredto split$5million, would you acceptthe following proposal?You are a player A; Player B offers you $1million and collects the remaining $4 million.If you reject the offer, neither of you will get anything.Do you take the offer?2) How could you take the advantage away from the player B in the ultimatum game?Answers should apply economic knowledge and terminology from ch.16
	
Document Preview: Janie and Jack have different values for studying and partying:  Jack  PartyStudyJanie  PartyC+Partying,C+Partying B+Partying,BStudy    B,B+Partying         A, A  A. If this is a prisoner's dilemma, find the Nash Equilibrium B. Change Janie's and Jack's values into a game of chicken with two equilibria For reference, review Other Games/ Game of Chicken portion on p178 (3rd edition) or on p195 (4th edition).C. How could Jack change the (prisoner's dilemma) game to his advantage? 1) If you were offered to split $5 million, would you accept the following proposal?You are a player A; Player B offers you $1million and collects the remaining $4 million. If you reject the offer, neither of you will get anything.  Do you take the offer? 2) How could you take the advantage away from the player B in the ultimatum game?Answers should apply economic knowledge and terminology from ch.16

David · Accepted Answer

A) Nash equilibrium is {C+Partying,C+Partying}, where each student receives a C plus Partying. . 
Prisoner’s Dilema 
  
Janie 
Jack 
 Party Study 
Party C+Partying(2) , C+Partying(2) Partying+B(4) , B(1) 
Study  B(1) , Partying+B(4) A(3) , A(3) 
Assume that students value leisure time more than a one-letter grade improvement, but less than a 
two-letter grade improvement. Thus, both students rank the outcomes as follows: 
 A grade of B,

) If you were offeredto split$5million, would you acceptthe following proposal? You are a player A; Player B offers you $1million and collects the remaining $4 million. If you reject the offer,...

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