- +1-530-264-8006
- info@tutorsglobe.com

If player 1s bargaining weight is pi1 23 what does the

Consider an infinitely repeated game with the following stage game:

Suppose that this repeated game is the underlying game in a contractual setting with external enforcement. Specifically, an external enforcer will compel transfer a from player 2 to player 1 in every period in which (N, I) is played, transfer b from player 2 to player 1 in every period in which (I, N) is played, and transfer g from player 2 to player 1 in every period in which (N, N) is played. The numbers a, b, and g are chosen by the players in their contract before the repeated interaction begins. These numbers are fixed for the entire repeated game. Assume that the players discount the future using discount factor δ

(a) Suppose there is full verifiability, so that , ß, and g can be different numbers. Under what conditions on δ is there a contract such that the players choose (I, I) in each period in equilibrium?

(b) Suppose there is limited verifiability, so that α = ß = before the repeated game is played, they can also make an up-front monetary transfer m from player 2 to player 1. Assume that if the players do not reach an agreement on α, ß, g, and m, then they will not play the repeated game and each player will get 0. If player 1's bargaining weight is π1 = 2/3 what does the standard bargaining solution predict will be the value of m?

Expected delivery within 24 Hoursrs

18,76,764

Questions

Asked

21,311

Experts

9,67,568

Questions

Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment
## Q : Different factors affecting promotion mix

Problem 1: What are some of the different factors can affect the promotion mix? Problem 2: What are two different message strategies that have been in commercials within the last year. Where they effective or not effective? Why?