Problem Set 4
Name: ______________________________________________

Problem Set 4 is to be...

Question

Problem Set 4
Name: ______________________________________________

Problem Set 4 is to be completed by 11:59 p.m. (ET) on Friday of Module/Week 8.


Movies are distributed in a variety of forms, not just first run theatrical presentations. What other ways are movies distributed? What are the different price points? Using this information, draw a fully labeled graph of the market for movies in which the distributor of the film price discriminates. (NOTE: This should not be perfect price discrimination.) 


Assume the following game is played one time only.
	
Document Preview: Problem Set 4Name: ______________________________________________Problem Set 4 is to be completed by 11:59 p.m. (ET) on Friday of Module/Week 8.Movies are distributed in a variety of forms, not just first run theatrical presentations. What other ways are movies distributed? What are the different price points? Using this information, draw a fully labeled graph of the market for movies in which the distributor of the film price discriminates. (NOTE: This should not be perfect price discrimination.) Assume the following game is played one time only. Based on the information in the payoff matrix, PNC Bank and Citizens Bank are considering an implicit collusive agreement on interest rates. Payoffs to the two firms are represented in terms of profits in thousands of dollars: Citizens BankCollude: Raise RatesDefect: Keep Rates where they are PNCCollude: Raise Rates(900, 600)(700, 800)Defect: Keep Rates where they are(1100, 300)(800,400)a. Does PNC have a dominant strategy? What is it? Does Citizens have a dominant strategy? What is it?b. Does the result of your answer change if the game is played an infinite number of times? Why or why not. Properly use game theoretic terminology in your answer. What is the profit maximizing output of the monopolist shown below? _____________What price do they set? _______________________What is the mark up over cost? _______________________Why will this price not fall?Draw the cheese market for the United States showing the world price as the price for this market. How much cheese does the U.S. import at the world price? Now assume that the cheese lobby promotes and successfully gains a tariff on cheese. What happens to the price paid by cheese lovers in the U.S.? How does this change the value generated by the market? Why do you say this? Where does this appear in your graph?Problem Set #4 HINT HINT HINTPosted on: Tuesday, October 8, 2013For Question One, create a graph...

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PROBLEM SET 4 
Name: ______________________________________________
Problem Set 4 is to be completed by 11:59 p.m. (ET) on Friday of Module/Week 8.
1. Movies are distributed in a variety of forms, not just first run theatrical presentations. 
What other ways are movies distributed? What are the different price points? Using 
this information, draw a fully labeled graph of the market for movies in which the 
distributor of the film price discriminates. (NOTE: This should not be perfect price 
discrimination.)  
We need to have the price points in the country/state you belong to.
2. Assume the following game is played one time only. Based on the information in the 
payoff matrix, PNC Bank and Citizens Bank are considering an implicit collusive 
agreement on interest rates.

Problem Set 4 Name: ______________________________________________ Problem Set 4 is to be completed by 11:59 p.m. (ET) on Friday of Module/Week 8. Movies are distributed in a variety of forms, not...

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