Essay will be at least three paragraphs (one covering each point below); target 250-400 words but feel free to go longer. It is clear from the examples in the text that Game Theory does not necessarily result in the optimal total profit among all firms. A Nash Equilibrium is rarely ever the greatest total profit, even in cases where collusion—legal or not—produces a sustainable equilibrium. (See Chapter 8, Problem 3, for instance: the highest total profit would not be the (30,30) but rather either (0.70) or (70,0).) Economics teaches that profit is a signal from the market (and therefore society as a collective) that you are allocating resources appropriately: that you are making the best possible use of the resources you are using as inputs or else someone would have outbid you for them. (Note that Game Theory is most of is used in analyzing oligopolies, which receive what economists describe as “excess rents”: profit that is above the intrinsic economic value of the inputs.) 1) Discuss whether Game Theory should be viewed as the “governor” on corporate practices, moderating excesses of behavior that might otherwise come to dominate a firm or industry. 2) Explain the conditions under which the choices made competitors using Game Theory—even as they eschew a higher total industry profit for one that is likely to sustain the current number of competitors in the market—may be closer to socially optimal, and 3) Discuss whether the selection of lower (but still positive) excess rents can be generalized to other forms of competition, especially monopolistic competition.
Related Completed Projects
Write a narrative/desсrіptive essay in which you tell the story of a turning poinT
Describe a Teaching statement- teacher as professional.
Discuss the Political economy of development.
Describe how social workers should use a multilayered approach and engage in meaningful collaboration with communities to mitigate how power influences how we work with marginalized communities?