Exercises 3.5

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eBay: Handreds of millions of people bid on eBay auctions to purchase g from all over the world. Despite being carried out on line, in spirit th auctions are similar to those that have been conducted for centuries. l auction a game? Why or why not?

3.2 Penalty Kicks: Imagine a kicker and a goalie who confront each other in penalty kick that will determine the outcome of a soccer game. The kid jump can kick the ball left or right, while the goalie can choose to or right. Because of the speed of the kick, the decisions need to be m simultaneously. If the goalie jumps in the same direction as the kick, thea goalie wins and the kicker loses. If the goalie jumps in the opposite directli of the kick, then the kicker wins and the goalic loses. Model this as a nom form game and write down the matrix that represents the game you mod

Meeting Up: Two old friends plan to meet at a conference in San Franci 3.3 and they agree to meet by “the tower.” After arriving in town, each real that there are two natural choices: Sutro Tower or Coit Tower. Not having o phones, cach must choose independently which tower to go to. Each pl prefers meeting up to not meeting up, and neither cares where this w happen. Model this as a normal-form game and write down the matrix fo of the game. CC th

Hunting: Two hunters, players 1 and 2, can each choose to hunt a stag, whic 3.4 provides a rather large and tasty meal, or hunt a hare-also tasty, but muchle alling. Hunting stags is challenging and requires mutual cooperation. If eite hunts a stag alone, then the stag will get away, while hunting the stag together guarantees that the stag will be caught. Hunting hares is an individualist enterprise that is not done in pairs, and whoever chooses to hunt a hare wi catch one. The payoff from hunting a hare is 1, while the payoff to each from hunting a stag together is 3. The payoff from an unsuccessful stag hunt is Represent this game as a matrix. I

Matching Pennies: Players 1 and 2 each put a penny on a table simultane 3.5 ously. If the two pennies come up the same side (heads or tails) then player l gets both pennies; otherwise player 2 gets both pennies. Represent this gan as a matrix.

Price Competition: Imagine a market with demand p(g) 100-4. The are two firms, I and 2, and each firm i has to simultaneously choose its pice Pi.If P. Get Economics homework help today