Question
Two people enter a bus. Two adjacent cramped seats are
free. Each person must decide whether to sit or stand. Sitting alone is more comfortable than sitting next to the other person, which is more comfortable than standing. Suppose that each person cares only about her own comfort. Model the situation as a strategic game. Find its Nash equilibrium (equilibria?).Solution
There exist only one pure strategy Nash equilibrium (stand, stand) and the argument is same as that of Prisoner’s Dilemma discussed in theory.
Judging from the figure, a person that chooses to consume bundle C is likely to
With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements:
- It is the flagship scheme of t...
X = 10Y+9 and Y = DX+8 are two regression equations of X on Y and Y on X respectively. Which of the following is true always regarding D
In which year FRBM Act was enacted ?
The Stolper-Samuelson theorem is a result in international trade theory. According to this theorem, an increase in the price of a good will:
The level of current inflation is 12% and inflation for the previous year was 6%. The strength of the effect of unemployment on the wages is 1.5. Calcul...
In a perfectly competitive market, a firm’s long run supply curve is
Consider an economy described by the following equations:
C = 100 + 0.6 ∗ (Y − T) (consumption function)
I = 200 − 10...
The H.M. and G.M. of a distribution are 8 and 10 respectively. Then the A.M. is
