Game Theory in Economics (Questions & Answers)


Solve the Questions

1. To Infinity, and Beyond! 

Consider the above game, played infinitely. Both Player A and Player B have the same
discount factor, δ.
(a) Suppose that both players follow a grim trigger strategy: play c as long as the
other player plays c – if the other player plays d, then subsequently play d forever.
Find the minimum δ such that this is a SPNE. (5 points)
(b) Assume that both A and B are playing some SPNE of the infinitely repeated
game. Let V
A and V
B be A and B’s discounted values. What are the
lowest values that V
A and V
B could have? (5 points)
(Hint: no calculations are needed. Apply the Folk Theorem.)

2. From Here to Eternity
Consider the following stage game, assuming the discount rate is δ = 0.99. Check
whether the strategy profiles are SPNE in the infinitely repeated game.

(a) Each player always plays c. (3 points)
(b) Each player always plays d. (3 points)
(c) Player A alternates between c and d, while player 2 always plays c; if any player
deviates from this scenario, then each player plays d thereafter. (3 points)
(d) Each player plays c, and if a player deviates, then he plays c, and the other player
plays d thereafter. (3 points)

3. Sharing Is Weak 

Let us extend the Tragedy of the Commons problem we discussed during lectures. Consider N players, each of whom has the following utility function each period: log(x),
where x is the amount consumed. Suppose there is a common property resource of size
y > 0. The game has two stages. In stage one, player, i = 1, …N can withdraw ci
, such
that P
ci ≤ y. In stage two, each player consumes of the remaining quantity, y −
In the case that they attempt to consume in excess of the available amount, then each
player splits the resource equally. For the sake of simplicity, let P
ci = ¯c.
(a) Write down each player’s intertemporal utility function.1
(2 points)
(b) What is the Nash equilibrium in Stage Two? (3 points)
(c) What is this game’s SPNE? (6 points)
(d) What is the socially optimal level of consumption in Stage One? (4 points)
(e) How does the difference between the SPNE consumption in Stage One, and the
socially optimal consumption in Stage One, change as N becomes very large? What
is the intuition for this, and does this explain why ecologist Garrett Hardin suggested
sterilization as a solution to this problem? [Hint: take the limit as N approaches
infinity.] (5 points)

Second language acquisition

This is an education paper. Please write  a 12-page literature review for the following topic: second language acquisition. Follow APA guidelines.

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Intercultural Issues in Business and Management

Question: You are provided with four case studies to analyze.

The structure of the paper will be cover page, introduction (275 words), analysis (825 words), recommendations (275 words), and conclusion (150 words). Include an abstra


Follow APA guidelines and use at least 12 peer reviewed sources.

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Schizophrenia DSM-5 or depression, Psychosis

Use DSM-5 and write 12 pages about schizophrenia. In your work, include the following: clinical presentation, diagnostic criteria, prevalence, theoretical perspectives on the causes of the disorder, and treatment approaches. Follow APA guidelines. Use at least 8 scholarly sources.

Relationship between religion and human sexuality

Write a short literature review about the relationship between religion and human and human sexuality. Follow AP guidelines. Use at least 3 sources.

Walmart Ethical Compliance

Write 1150-1650 essay in which you examine the manner in which Walmart Business Philosophy has impacted its perception of being unethical towards supply and employee stakeholders. Follow APA guidelines.

Health and Safety in Buildings

Discuss health and safety in buildings (1,650 words). Cover the topic in depth. You can use this outline.

Risks to Health and Safety

Types of risks at the site

Role of the civil engineer at the site

Legislations at the site

Civil Engineering Context

Social Context

Network Diagrams : Project Management


1) Create and name a project (such as planning a wedding, building an addition to the house, training for a marathon, etc). This can be any project you choose.

2) Create a network diagram with boxes (must be in some type of typed format (word, excel or other electronic format)).

3) Network diagram must have at least 10 activities

4) Network diagram must have at least 1 activity with 2 predecessors

5) Project in the network diagram must take at least 15 days to accomplish

6) Correctly label and identify the ES, EF, LS, LF and Float for each activity. (Be sure to provide a key for the boxes so I know what you are identifying as each ES, EF, LS, LF and Float)

7) Identify Critical Path