... Explain. (b) Show that any risk averse decision maker whose preference satisfies indepen- dence axiom must prefer L **2** to L 3 . 3. Question 3 (4 points) Suppose a monopolist with constant marginal costs prac- tices ...

5

... (a) The intersection of any pair of open sets is an open set. (b) The union of any (possibly infinite) collection of open sets is open. (c) The intersection of any (possibly infinite) collection of closed sets is closed. ...

1

... Set **2**: Due on May 10 Advanced Microeconomics I (Spring, **1**st, 2012) ...Question **1** (**2** points) Suppose the production function f satisfies (i) f (0) = 0, (ii) increasing, (iii) con- tinuous, (iv) ...

2

... A good is called normal (resp. inferior) if consumption of it increases (resp. declines) as income increases, holding prices constant.. Show the following claims.[r] ...

2

... that a plea bargain is allowed): If both confess, each receives 3 years imprisonment. If neither confesses, both receive **1** year. If one confesses and the other one does not, the former will be set free ...

27

... e z . The prices of the three goods are given by (p, q, **1**) and the consumer’**s** wealth is given by ω. (a) Formulate the utility maximization problem of this consumer. (b) Note that this consumer’**s** ...

2

... Combination of dominant strategies is Nash equilibrium. There are many games where no dominant strategy exists[r] ...

20

... Solve the following problems in Snyder and Nicholson (11th):. 1.[r] ...

1

... Set **2**: Due on May 14 Advanced Microeconomics I (Spring, **1**st, 2013) ...Question **1** (6 points) (a) Suppose the utility function is continuous and strictly ...

2

... ◮ A lottery p is a function that assigns a nonnegative number to each prize **s**, where P **s**∈S p(**s**) = **1** (here p(**s**) is the objective probability of obtaining the prize **s** given the ...

15

... (a) The intersection of any pair of open sets is an open set. (b) The union of any (possibly infinite) collection of open sets is open. (c) The intersection of any (possibly infinite) collection of closed sets is closed. ...

1

... Solve the following problems in Snyder and Nicholson (11th):. 1.[r] ...

1

... Solve the following problems in Snyder and Nicholson (11th):. 1.[r] ...

1

... (a) The intersection of any pair of open sets is an open set. (b) The union of any (possibly infinite) collection of open sets is open. (c) The intersection of any (possibly infinite) collection of closed sets is closed. ...

1

... “Soon after Nash ’s work, game-theoretic models began to be used in economic theory and political science,. and psychologists began studying how human subjects behave in experimental [r] ...

26

... Set **2**: Posted on November 18 Advanced Microeconomics I (Fall, **1**st, 2013) ...Question **1** (7 points) A real-valued function f (x) is called homothetic if f (x) = g(h(x)) where g : R → R is a strictly ...

1

... Solve the following problems in Snyder and Nicholson (11th):. 1.[r] ...

1

... Set **2**: Posted on November 4 Advanced Microeconomics I (Fall, **1**st, 2014) ...Question **1** (7 points) A real-valued function f (x) is called homothetic if f (x) = g(h(x)) where g : R → R is a strictly ...

1

... Solve the following problems in Snyder and Nicholson (11th):. 1.[r] ...

1

... u **2** (x, y **2** ) = **2** ln x + y **2** ...persons **1** and **2** when he buys x, and thinks only of his own utility maximization ...persons **1** and **2** buy? (b) Use the Samuelson ...

2