Monday, September 23, 2019
A short video in preparation for the Excel homework due this Wednesday at 11 PM.
This is just me reading a power point with text. I did try to make it so you would focus on one line at a time. I'm curious to know if this helps you and is the type of preparation you wanted. In the next homework, there will be calculations like in the previous homework. So that may be a better test on the type of preparation that works for you.
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A student asked:
ReplyDeleteI was trying to complete the excel HW due this week and have been having trouble with one question. The one asking for a value that theta has to be less than, I entered as 0 but the key for the google form is not appearing. Please let me know what I am doing wrong!
My response:
If you got the two proceeding questions right, they give the payoffs from (1) always playing the cooperative strategy (which is Top, while the other player play Left) versus (2) cheating in the initial period (so playing Bottom while the rival plays Left) and then playing the equilibrium of the one-shot game in play thereafter. You need to compare the payoffs. If (1) gives a larger payoff than (2), then cooperation can be sustained as an equilibrium of the game. If (2) is bigger than (1), the only equilibrium of the repeated game is to play the equilibrium of the one-shot game each period. Which it is depends on the value of theta. You need to work through some algebra to find the critical value of theta, which is what the question is asking you to do.
thank you! that really helped!
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