Question

Why is the repeated- game model more relevant for economics analysis? Given an economic example where...

Why is the repeated- game model more relevant for economics analysis? Given an economic example where the single-period model is applicable

Homework Answers

Answer #1

one often generates multiple outcomes in general equilibrium partly by varying the technology or preferences in the model.A repeated game more readily gives multiple equilibria despite holding the technology and preferences fixed. that why repeated game model is more relevant for economic analysis

single period model  are sold at their regular price only during a single time period.Demand for these products is highly variable but follows a known probability distribution.Salvage value of these products is less than their original cost, so you lose money when they are sold for their salvage value.For example, week-old newspapers are inexpensive compared to newspapers offering fresh news. The question is how many of these products you should order to maximize your expected profit.

please upvote if i'm able to help you it means a lot

thank you

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Why engineering economics is important for engineers Engineers must be able to incorporate economic analysis into...
Why engineering economics is important for engineers Engineers must be able to incorporate economic analysis into their creative efforts Often engineers must select and implement from multiple alternatives Designing involves economic decisions Engineers design and create All given answers
Why is determining standard deviation valuable? Give a relevant example where this would be valuable in...
Why is determining standard deviation valuable? Give a relevant example where this would be valuable in Police work.
Consider the infinitely repeated version of the Cournot duopoly model where price in the market is...
Consider the infinitely repeated version of the Cournot duopoly model where price in the market is given by P = 100 – Q for Q= q1 + q2 and marginal cost of production for both firms is given by c= 10. a) What is the Nash equilibrium of the static game? What is the profit of each firm? b) If there was only one firm in the market, and P = 100-q1, what is the static monopoly optimum? What is...
Which of the following is an example of where Behavioral Economics is being used? 1. To...
Which of the following is an example of where Behavioral Economics is being used? 1. To discourage texting, a huge tax is placed on its use 2. To encourage people to buy more hamburgers, a firm lowers its price 3. To encourage people to buy an item, you don't just show its price but show the price as being marked down from a higher price 4. To discourage people from using plastic bags at grocery stores, people are suddenly charged...
Game Theory: John and Dave are playing a game where they only have two strategies, either...
Game Theory: John and Dave are playing a game where they only have two strategies, either to move left or move right. The payoffs from this game are the points that each player will earn given the strategies that each play. The higher the points, the higher the payoffs each player will receive. The normal form representation of the game is presented below.                                                    DAVE                         Left                                                  Right Left 1,1 0,3 Right 3,0 2,2 John's name label should be on...
Suppose we know that output in the economy is given by the production function: Yt =...
Suppose we know that output in the economy is given by the production function: Yt = At Kt(1/3) Lt(2/3) A.  Use partial derivative techniques to solve for the marginal product of capital. (Remember, it is an equation and NOT a single number). You must show your work, don’t just simply copy the answer from the book or lectures. B. Explain what happens to the MPK as K is increased. Make sure your explanation includes a behavioral rather than just mathematical explanation....
In this project you implement a program such that it simulates the process of repeated attempts...
In this project you implement a program such that it simulates the process of repeated attempts to hit a target with a projectile. The goal is to shoot the projectile within a 1 foot distance from the target, since such a short miss is accepted as a hit. Your program is responsible for the following tasks. Compute the trajectory data of a projectile (such as the time, the maximum height and the distance as described by the formulas above) for...
11. A map of the United States is an example of: Multiple Choice a model that...
11. A map of the United States is an example of: Multiple Choice a model that simplifies the complexities of the country. a theory that simplifies the complexities of the country. an exact representation of the complex details of the country. a version of the circular flow diagram. 12. In a command economy, the __________ either makes most economic decisions itself or at least strongly influences how the decisions are made. Multiple Choice A. government B. market C. firm D....
Journal entry 5: Choose a species from their site…determine generation time Reconsider the Finches example. It...
Journal entry 5: Choose a species from their site…determine generation time Reconsider the Finches example. It was found that average beak depth in finches changes considerably over the course of a few years. What if you were an evolutionary biologist sent to do research on a small island off of South America. You’re interested in how a 500% increase in rain has affected the animals there. You have $1 million, and 5 years to complete your study. This particular island...
Problem 11-18 Relevant Cost Analysis in a Variety of Situations [LO11-2, LO11-3, LO11-4] Andretti Company has...
Problem 11-18 Relevant Cost Analysis in a Variety of Situations [LO11-2, LO11-3, LO11-4] Andretti Company has a single product called a Dak. The company normally produces and sells 60,000 Daks each year at a selling price of $32 per unit. The company’s unit costs at this level of activity are given below: Direct materials $ 10.00 Direct labor 4.50 Variable manufacturing overhead 2.30 Fixed manufacturing overhead 5.00 ($300,000 total) Variable selling expenses 1.20 Fixed selling expenses 3.50 ($210,000 total) Total...