A kidnapper takes a hostage and demands that the hostage pay ransom. They then play the following game in extensive form. The hostage may pay the ransom or not. Following that, the kidnapper may kill the hostage or release him. If the hostage is released, he may report the kidnapping to the police or not report it. The kidnapper has utility +5 for getting paid, -2 for having the kidnapping reported, and -1 for killing the hostage. These utilities are additive (for instance, getting paid but also reported is worth 5-2 = 3). Utilities for the hostage are -10 for getting killed, -2 for paying, +1 for reporting, and these are also additive.
Draw the game tree for this game, labeling choosers, choices and payoffs. Find the natural outcome of the game. [It should be the second worst outcome for both players.)
Suppose the hostage could make a convincing threat or promise. What should it be? What is the new outcome? Who benefits?
Suppose that after the hostage makes the convincing threat or promise in c), the kidnapper can make a threat or promise. What should it be? What is the new outcome? Who benefits?
If the hostage is not able to make a convincing threat or promise, but the kidnapper can, what should it be and what is the result?
Suggest some real-life ways that any or all of the above threats and promises might be made credible.
Answers: 1
Business, 22.06.2019 22:30, josephinekiim
Luggage world buys briefcases with an invoice date of september 28. the terms of sale are 2/10 eom. what is the net date for this invoice
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Business, 22.06.2019 23:10, hannah2757
Until recently, hamburgers at the city sports arena cost $4.70 each. the food concessionaire sold an average of 13 comma 000 hamburgers on game night. when the price was raised to $5.40, hamburger sales dropped off to an average of 6 comma 000 per night. (a) assuming a linear demand curve, find the price of a hamburger that will maximize the nightly hamburger revenue. (b) if the concessionaire had fixed costs of $1 comma 500 per night and the variable cost is $0.60 per hamburger, find the price of a hamburger that will maximize the nightly hamburger profit.
Answers: 1
A kidnapper takes a hostage and demands that the hostage pay ransom. They then play the following ga...
Mathematics, 16.10.2019 22:00
Mathematics, 16.10.2019 22:00
Mathematics, 16.10.2019 22:00
Mathematics, 16.10.2019 22:00
Mathematics, 16.10.2019 22:00
Mathematics, 16.10.2019 22:00