Problem set 3 Micro Susen Wang Try to do most problems in MWG(1995), Chapters 7-9 Question 3.1.(Mixed-Strategy Nash Equilibrium). A principal hires an agent to perform some service at a price(which is supposed to equal the cost of the service The principal and the agent have initial
Problem set 1 Micro Theory S. Wang Question1.1. Show that“f(X)=f(x),Vx∈R,A>1” implies“f(A)= Af(x),Vx∈R,A>0.” estion 1.2. Use a Lagrange function to solve c(w1, w2, y) for the following problem
Then =1-91=1(3+:2)(3+2n 可=-1-3)=1(4-+2)(1-2+a With 1 0 O: Thus, in equilibrium, we must have ai=.2. In fact, the two firms must sit in the middle By Proposition 2.1, Pi=p?=c Discussion