GM and FORD at current prices their profits
Question:i need help with these 3 questions
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3.GM and FORD at current prices their profits are GM=600, FORD =700.
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GM considers cutting price. If it does and FORD does not match, the payoff of 's isGM=900, FORD =300.
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If FORD matchs: GM=500, FORD =500
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a)Â Â Â Â Â Construct a game tree describing above situation, assuming sequential game and GM is the first mover.
b)Â Â Â Â Â Is there a Nash equilibrium?
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Question 4: endowed with:
     XA=120 YA=80
     XB=75  YB=120  PY=1
A is willing to give up 2 unions of X for 1Y
B is willing to give up 1X for 2Y
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a)Â Â Â Â Â Draw edgeworth box, reservation prices, zone of possible trade.
b)Â Â Â Â Â Prove competitive equilibrium price will be bounded to reservation prices.
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5.General Equilibrium:
A's endowment : XA=50, YA=125Â Â A's preferences: UA=XA2YA
B's endowment: XB=150, YB=75Â Â Â B's preferences: UB=XBYB2
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Calculate price for X,Y,P
Answers
Status NEW
Posted 12 Jul 2017 12:07 AM
My Price 8.00
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