“Please answer the following questions and upload your responses in the dropbox folder, Art of Strategy Question Responses. However, I encourage you to start early. While the book is meant to be fun and a relatively painless introduction to game theory and strategic thinking, it is still about 300 pages I am asking you to read. Also, reading this book prior to or concurrent with the textbook chapters may be helpful for the homework, particularly for Chapter 12.
In responding to the questions, please be concise. The primary purpose of the questions is to ensure that you have read the chapters. Rarely will the answer to a question require more than a few sentences, and sometimes just a couple words or numbers. All answers to the questions are directly provided within the book chapters, or require a small extension from something directly discussed.”
Reading Response Questions:
1. If a Prisoner’s dilemma game is repeated exactly 100 times, what does game theory predict will happen?
2. In general, what is a “tragedy of the commons”?
1. What is the definition of a Nash equilibrium?
2. This chapter provides several examples of coordination games. Here is another: You and another person separately (and privately, with no communication) pick an integer between 1 and 10. If you pick the same number, you both win a prize. If you pick different numbers, you win nothing. How many Nash equilibria are there in this game, and what are they?
3. What is a dominant strategy? What is a dominated strategy?
4. Briefly describe John Manard Keynes’ metaphor for the stock market.
5. Bonus: Pick a number between 0 and 100. Your goal is to pick a number that is closest to half of the average chosen number of the entire class. If you are among the closest 5 people, 2 points will be added to your lowest (non-dropped) exam score.
1. What rule of thumb does the book suggest is useful for determining whether randomness is needed in a constant-sum game?
2. In general, how does a player determine the appropriate mix (probabilities) of their pure strategies?
3. If a person is asked to write down a “random” sequence of coin tosses, how would the sequence tend to deviate from a likely true random sequence?
4. How can randomized strategies be used to motivate compliance at a lower monitoring cost?
5. The chapter provides an example of a penalty kick situation in soccer, where the goalie practices and improves his skill at saving penalties struck to the natural (right) side. How does this affect his mixture probability of attempting saves on the right side? Why is this the case?
1. How do the authors suggest one might win at the game of chicken?
2. What are the differences between a commitment, a threat and a promise?
3. How might B.B Lean aggressively threaten Rainbow’s End to deter it from initiating any price cuts? How is their threat made credible?
4. How can “salami tactics” be used to defeat a threat?
5. What is the basic idea of brinkmanship?
1. What are the two main avenues through which an individual or firm can add credibility to their threat, promise, or commitment?
2. How might the Mafia serve to change the payoffs (and outcome) of two criminals engaged in the Prisoner’s dilemma?
3. Why did Cortes have his ships burned upon arriving to face an army that vastly outnumbered his?
4. In Dr. Strangelove, when asked about the possibility of a device (the Doomsday Machine) being able to trigger itself automatically, what did Dr. Strangelove mean with his reply, “It is not only possible – it is essential”?
5. How might forcing college bookstores to buy back used textbooks make students, faculty and publishers worse off?
1. What is signaling? What is necessary for a signal to be effective?
2. If education has a large signaling role, does this help or hurt Bernie Sanders’ case for free college for all?
3. What is the information asymmetry in the insurance market? How does this lead to “adverse selection”?
4. What is one reason the authors offer as to why an MBA might be especially valuable for women?
5. Answer (briefly) the “A Trip to the Bar” question.
6. Why did IBM intentionally slow down the speed of one of its printers?
1. What is a BATNA?
2. In the airfare example, suppose the one-way airfares were instead:
Using the authors approach, when both firms are equally patient, what would be the amount paid by each of the firms?
3. Is the strategy of brinkmanship a weapon for the stronger or the weaker of the two parties in a negotiation?
4. What is a virtual strike, and why might workers work harder during one?
1. Chapter 8 discussed adverse selection, resulting from asymmetric information in the characteristics of a product or person. How does moral hazard, another type of asymmetric information problem, differ from this?
2. What is the reasoning for offering a compensation scheme that includes a flat sum plus a bonus on the basis of output (as opposed to either just a flat sum or paying strictly on the basis of the worker’s output)?
3. What is the idea of an efficiency wage?
4. As compared to paying a bonus based on a worker’s observed performance, what is the benefit of paying workers on the basis of relative performance?
Gay (1992) broke down the impacts of 2 People see ads all around the world that endeavor to tempt shoppers to purchase items. Notices are put in daily papers, magazines, schools, and on bulletins all over the place. As indicated by promoting experts Stan Rapp and Tom Collins, on a run of the mill day, a man all things considered sees more than 5,000 ads per day. Publicizing is essentially expected to uncover the advantages of items that buyers wish for. It is crucial to numerous organizations, as some future unfit to make due without a method for making their items perceived. Despite the fact that publicizing is blamed for affecting customers to purchase things they needn't bother with, they have the decision to buy. It is up to the shopper to settle on sensible decisions and create shopping aptitudes. Alexander and Hanson (1993) thought of numerous inquiries which emerge about these notices, for example, "Is promoting misleading? Does it make or propagate generalizations? Does it make similarity? Does it make frailty keeping in mind the end goal to offer products? Does it make individuals purchase things that they truly needn't bother with?" Advertisers utilize particular strategies to point youngster buyers, yet these techniques are not continually doing great or moral. Publicizing is giving the general group data about new merchandise and endeavoring to upgrade general deals, which expands the skill of the country's economy. It should be a critical method for getting the point crosswise over about an item and make impetus for people to purchase. Publicizing alone, in any case, does not get clients. It just gets customers' advantage, motivates them to stroll up to a rack, and make an imprudent purchase. There are a few approaches to look into shoppers' practices, likes, and aversions. Publicizing uncovers the most recent styles and the new well known oddities available. It displays culminate people wearing the new styles and looking prevalent. Customers watch this flawlessness and begrudge it. Along these lines, they go out and purchase with expectations of achieving flawlessness. Besides, being an acknowledged individual from society has turned out to be exceptionally basic to generally people. For example, the nearness of personal stench on people makes them an untouchable in the public eye. Publicists utilize this knowled. Works that ought to be refered to are the accompanying: Walt Whitman. "Melody of Myself" (segments 1-24, 33, 51, and 52; lyric, ca. 45 pages) Ralph Waldo Emerson. "Confidence" (paper, ca. 25 pages) Andrew Bennett and Nicholas Royle. An Introduction to Literature, Criticism, and Theory, Fifth Edition (2016). Chosen parts are; "Me", and "The content and the world" The confidence and the reference book about writing will be given in a pdf arrange however Song of Myself can be found here with the specific areas here: https://www.poetryfoundation.org/ballads/45477/tune of-myself-1892-rendition Page numbers can be found here: https://muse.jhu.edu/book/48060. The capacity of managing startling and sudden occasions that irritates groups and changes in association culture is known as emergency administration. As of late we have possessed the capacity to palpate transboundary emergency, that have influenced partners in various structures. For instance, the 2011 tidal wave of Japan, which interfered with production network everywhere throughout the world, particularly in the car business (Crandall, Parnell and Spillan, 2010). This craft of managing emergency requires aptitudes and information to sort out partners' recuperation. Emergency administration readies the individual to create abilities in a surprising and unfriendly conditions inside the association of a crisis reaction with bravery and assurance. The coordination of the crisis reactions to a more extensive episode that debilitates to hurt and wreck structures, capacity to work viably and proficiently. The continuum assessment of the arranging and programmed episode reaction turns into a noteworthy piece of the procedure in an emergency administration design. Authoritative assets accessible in an emergency in Dominican Republic. As per Crandall, Parnell and Spillan (2014) there are nations and societies that are known as "emergencies arranged", on the grounds that they have possessed the capacity to prepare and bolster any emergency wanting to conquer their shortcoming. The Dominican Republic isn't the special case, when an emergency emerges the group and Dominican Civil Defense are the first to react to the crisis, as people on call. All things considered, not every person is set up to help someone else or accept a part of initiative during the time spent a crisis emergency. The national crisis and correspondence framework, known as the Center for Emergencies Operation, [COE], in its part of the main office across the country in an emergency, and reacting association has possessed the capacity to create skill and capacities to help potential emergencies and deal with the ones that in the end happen. The Center for Emergencies Operation, [COE], is qualified for create, survey, execute and prepare faculty, volunteers and the group in reference to the national arrangement and administration for crises across the country. The Dominican Civil Defense, are the person on call for the scene of a cataclysmic event or emergency. This is one of the crisis gatherings, in any event, most referred to in the nation as prepared specialists on call for a crisis. The Dominican Civil Defense started their group benefits as a gathering of volunteers to the group by giving correspondence benefits as radio beginner by 1963. Their first authority support to the group was with Hurricane Flora, where they demonstrated how they were successful in giving correspondence across the country under a crisis debacle as a tropical storm. The Dominican Red Cross enabled them to station their focal correspondence inside their middle. By, 1966, the Dominican government ordered the Law 257, which made the Dominican Civil Defense as an official living being to help crises. Along these lines, turning into an official state establishment under the umbrella of the Center of Emergencies Operation, COE. In September 22, 2002, the legislature instituted the Law 147-02 by which the hazard administration, turned into the official crisis administrative Agency responsible for building up the national crisis and correspondence design alongside its controls. As general standards they keep to ensure, arrange, take an interest, show counteractive action and decentralize administrations. Their essential objective is to avoid or decrease loss of lives and limit property harms of regular folks and government from catastrophic events or artificial calamities. The Dominican Civil Defense, is one the creatures under the umbrella of COE, and in addition the Dominican Red Cross, Energy Conservation Department, Fire Department, Police Department, Dominican Port Authority, Health Department, Environment and Natural Resources Department, Dominican Seismological Institute, National Housing Department, among others, have been perceived as a crisis emergency group of experts and experts nearby, national and globally for its work group in the interest of those in require and the group. On account of the Dominican Civil Defense, their labor is made out of 95% of consistent prepared volunteers, an official chief, an officer corps, and departmental supervisors who, as indicated by their scholarly readiness start working for the group and the advantage of the nation. As indicated by Treurniet, Van Buul-Besseling and Wolbers (2012) the group might be characterized as a gathering of individuals living in a similar territory and having a specific attributes in like manner of being a person. Furthermore, accordingly, they will have a place with various gatherings and groups, sharing their comprehension of a genuine dynamic group work, towards each other. By 2014, the Dominican Republic executed without precedent for its history the administrations of 911. As one of the new crisis asset administrations focus, its experts in control wanted to instruct enormously the populace about the utilization and advantages of 911. The correspondence methodology was enormously utilized (TV and radio) amid the accompanying two months preceding the actuation of the 911 framework across the nation. Pearson and Mitroff (1993) communicated that there is a need of teaming up with the group, since it gives a feeling of being part dynamic inside the group. Moreover, they clarified that the group can share their desires, evaluating their necessities and objectives of the individuals who are requiring help. During emergency, the learning of teaming up formally or casually with associations in achieving one objective of assisting someone else turns into a versatile conduct (James and Gilliland, 2013). In the Dominican Republic, Center for Emergency and Communication Operations, [COE] would be comparative in its capacity to what FEMA is in the United States. The Dominican Civil Defense is assigned under the umbrella of the COE. This Center would be part basic of the Crisis Management Team, CMT and the Crisis Management Plan, CMP. COE organizes steady trainings with national and global organizations who are additionally managing crises and emergency keeping in mind the end goal to trade encounters and prepare with new procedures. Today, the Dominican Civil Defense has turned out to be one of the organizations of the Government that has extraordinary compared to other correspondence arranges in the nation after the Armed Forces. They have a correspondence framework in the UHF band or ''ultra-high recurrence" as of late introduced, and an armada framework is national in scope, notwithstanding ordinary telephones. As of now, the Dominican Civil Defense has a radio station, which is the spirit of the establishment in emergency and crises that work 24 hours per day and the 365 days of the year (Dominican Civil Defense, 2014). Emergency Theories. Hypotheses influence a few presumptions to give a clarification of a given circumstance. A few creators, for example, James and Gilliland (2013) clarifies that the Eclectic Crisis Intervention Theory involves a purposeful and deliberate specifically coordinated substantial ideas and techniques to help the casualties from various methodologies. This specific hypothesis starts filling in as an undertaking focused hypothesis, rather than utilizing ideas. A few noteworthy undertakings recognized in this hypothesis are: Distinguish components in all frameworks and to coordinate them into an inside reliable entire giving a more precise behavioral information to be clarified. Think about every single existent hypothesis, techniques, and principles for assessing and controlling clinical information as per the propelled learning of time and place. The need to relate to no particular hypothesis, with a receptive outlook and ceaselessly explore different avenues regarding those details and systems that deliver victories. This specific hypothesis incorporates two inescapable topics. The first of those subject is that individuals and all emergencies are one of a kind and unmistakable, subsequently can apply to anybody and any sort of culture. Besides, all individuals and all emergencies are comparable. Consequently, James and Gilliland (2013) comprehends that these suspicions are viewed as totally unrelated. The mixed approach, as indicated by James and Gilliland (2013) give a chance to various methodologies and speculations, in this manner, it enables the chance of having the capacity to evaluate the casualty's needs keeping in mind the end goal to apply and design the proper strategies customized to the individual. The specialist, then again, will go out on a limb and will have the eagerness to change a way to deal with another procedure regardless of whether the first had work. In any case, the Interpersonal hypothesis fundamentally clarifies that individuals can not support an individual condition of an emergency for long, on the off chance that they truly have confidence in themselves and in others. Having certainty, the individual will wind up self-realized and defeat the emergency (James and Gilliland, 2013). Crandall, Parnell and Spillan (2014) clarified that the basic objective of the emergency administration group, CMT is to prepare for potential emergencies and deal with those emergencies that in the long run happen. Thusly, it will be viewed in three viewpoints, emergency reaction associations and audit their connection between associations. Moral and lawful difficulties. Crandall, Parnell and Spillan (2014) gave a comprehension of the significance of moral and lawful duties and difficulties when managing associations and their social boundaries. The moral culture of the associations the vast majority of time is being imperfect due to the dishonest conduct performed by its workers, and paying little mind to their composed code of morals. For instance, farfetched objectives of associations, may lead workers to doubtful basic leadership. In this manner, workers may feel, that they ought to cause in exploitative conduct to get the objective by undermining hierarchical strategies (Crandall, Parnell and Spillan, 2014). Then again, moral norms are not considered to have legitimate weight just, as per James and Gilliland (2013); clarifies that the Eclectic Crisis Intervention Theory involves a purposeful and efficient specifically coordinated legitimate ideas and methodologies to help the casualties from various methodologies. This specific hypothesis starts filling in as an assignment arranged hypothesis, rather than utilizing ideas. A few noteworthy undertakings recognized in this hypothesis are: Distinguish components in all frameworks and to incorporate them into an inside reliable entire giving a more exact behavioral information to be clarified. Think about every single existent hypothesis, strategies, and principles for assessing and controlling clinical information as indicated by the propelled learning of time and place. The need to relate to no particular hypothesis, with a receptive outlook and persistently explore different avenues regarding those definitions and methodologies that deliver victories. This specific hypothesis coordinates two inescapable topics. The first of those topic is that individuals and all emergencies are interesting and unmistakable, thusly can apply to anybody and any sort of culture. Also, all individuals and all emergencies are comparable. Subsequently, James and Gilliland (2013) comprehends that these suppositions are viewed as fundamentally unrelated. The varied approach, as per James and Gilliland (2013) give a chance to various methodologies and speculations, accordingly, it enables the chance of having the capacity to evaluate the casualty's needs keeping in mind the end goal to apply and design the proper strategies customized to the individual. The advisor, then again, will go out on a limb and will have the readiness to change a way to deal with another strategy regardless of whether the first had work. In any case, the Interpersonal hypothesis generally clarifies that individuals can not support an individual condition of an emergency for long, in the event that they truly trust in themselves and in others. Having certainty, the individual will end up self-realized and defeat the emergency (James and Gilliland, 2013). >GET ANSWER