NOTE: On the“ ethics” of problem sets Some of the theoretical exercise I will assign are actually well-known results; in other cases you may be able to find the answer in the literature. This is certainly the case for the current My position on this issue is that, basically, if you look up the answer somewhere it's your problem. After all, you can buy answer keys to most textbooks. The fact is, you will not have access to such, ehm, supporting material when you take your generals, or, in a more

Introduction Signaling games are used to model the following situation: Player 1, the Sender, receives some private information and sends a message m E M to Player 2, the Receiver. The latter, in turn, observes m but not 0, and chooses response r E R. Players'payoffs depend on 0, m and r. What could be simpler? Yet, there is a huge number of economically interesting games that fit nicely within this framework: Spence's job market signaling model is the leading example, but applications abound in IO (limit pricing, disclosure...) finance (security design) and political economics

Introduction These notes essentially tie up a few loose ends in Lecture 8; in particular, I exhibit examples of inefficiencies in first- and second-price auctions. I would also like to briefly comment on Questions 1 and 2 in Problem Set 2 The first-price auction may be inefficient even with private values Both examples I am going to show are due to Eric Maskin(to the best of my knowledge) The first point I wish to make is that, even in a private-values setting, asymmetries may

Introduction Nash equilibrium has undoubtedly proved to be the most influential idea in game theory. enabled fundamental breakthroughs in economics and the social sciences. Its development was a major intellectual achievement; what is perhaps more important, it Recent foundational research has emphasized the subtleties in the interpretation of Nash

Introduction By and large, I will follow OR, Chap. 8, so I will keep these notes to a minimum. ] The theory of repeated games is a double-edged sword. On one hand, it indicates how payoff profiles that are not consistent with Nash equilibrium in a simultaneous-move game might be achieved when the latter is played repeatedly, in a manner consistent with Nash or even subgame-perfect equilibrium On the other hand, it shows that essentially every individually rational payoff profile can

1. Game Theory Multiperson Decision Theory Zero-Sum games Marciano siniscalchi September 16, 1999 administrative stuff Class: Tue-Thu 10: 40-12: 1021, Room 317, Bendheim. OH, by appointment The big picture Most of you will already have used some of the tools of GT in your core courses You will probably be familiar with the

Since the mid-1980s there has been a considerable increase in legislation defining maximum temperatures during the production, distribution and retailing of chilled food. However, as soon as the food is purchased by the consumer, it is outside of any of these legislative requirements. Increasingly food poisoning incidents have been found to be due to mishandling of food in the home with insufficient refrigeration or cooling being the most fre

Whilst a number of characteristics affect the overall quality and acceptability of both fresh and frozen meats, tenderness is the major characteristic of eating quality because it determines the ease with which meat can be chewed and swallowed. The tenderness of meat is affected by both chilling/freezing and storage. Under the proper conditions, tenderness is well maintained throughout the chilled/frozen storage life, but improper chilling/freezing can produce severe toughening and meat of poor eating quality

The quality of fresh meat exposed for retail sale is initially judged on its appearance. The presence of exudate or'drip', which accumulates in the container of prepackaged meat or in trays or dishes of unwrapped meat, substantially reduces its sales appeal (Malton and James, 1983). Drip can be referred to by a number of different names including purge loss',press loss'and 'thaw loss'depending on the method of measurement and when it is measured. In general, beef tends to lose proportionately more drip than pork or lamb. Since most of the exudate comes from the cut ends of muscle fibres

1. Dear sirs We refer to contract No 645 for 500 pieces of printed cotton. The contract was made on a cfr basis, whereas your letter of cred it stipulates CIF. This inconsistency must obviously be resolved To avoid any further delay in shipping, we suggest that we arrange the insurance cover. The premium will cost US$140 and we could deduct it from the 2% commission payable to you. The balance