Imagine that a zealous prosecutor (P) has accused a defendant (D) of com- mitting a crime. Suppose that the trial involves evidence production by both parties and that by producing evidence, a litigant increases the probability of winning the trial. Specifically, suppose that the probability that the defendant wins is given by eD /(eD + eP), where eD is the expenditure on evidence production by the defendant and eP is the expenditure on evidence produc- tion by the prosecutor. Assume that eD and eP are greater than or equal to 0. The defendant must pay 8 if he is found guilty, whereas he pays 0 if he is found innocent. The prosecutor receives 8 if she wins and 0 if she loses the case.
(a) Represent this game in normal form.
(b) Write the first-order condition and derive the best-response function for each player.
(c) Find the Nash equilibrium of this game. What is the probability that the defendant wins in equilibrium?
Answers: 3
Another question on Business
Business, 22.06.2019 18:00
Martha entered into a contract with terry, an art dealer. according to the contract, terry was to supply 18 th century artifacts to martha for the play she was directing, and martha was ready to pay $50,000 for this. another director needed the same artifacts and was ready to pay $60,000. terry decided not to sell the artifacts to martha. in this case, the court may order terry to:
Answers: 2
Business, 22.06.2019 20:10
With signals from no-claim bonuses and deductibles, a. the marginal cost curve for careful drivers lies to the left of the marginal cost curve for aggressive drivers b. auto insurance companies insure more aggressive drivers than careful drivers because aggressive drivers have a greater need for the insurance c. the market for car insurance has a separating equilibrium, and the market is efficient d. most drivers pay higher premiums than if the market had no signals
Answers: 1
Business, 22.06.2019 22:00
Acontractor was awarded a purchase order for commercial items for $1.5 million under the authority of far subpart 13.5. the purchase order was issued in november 2010 and containedall applicable clauses that were current as of the date of the purchase order. under the purchase order, the contractor is required to comply with a small business subcontracting plan that contains all of the required elements. which of the following is true? a.the contractor must submit a standard form 294, subcontracting report for individual contracts. b.the contractor must submit an individual subcontracting report through the electronic subcontracting reporting system (esrs). c.the contractor may submit either an sf 294 or report its subcontracting through esrs. d.the contractor is not required to submit any subcontracting reports.
Answers: 1
Business, 22.06.2019 22:00
What resourse is both renewable and inexpensive? gold coal lumber mineral
Answers: 1
You know the right answer?
Imagine that a zealous prosecutor (P) has accused a defendant (D) of com- mitting a crime. Suppose t...
Questions
Computers and Technology, 30.03.2020 21:30
Mathematics, 30.03.2020 21:30
Mathematics, 30.03.2020 21:30
History, 30.03.2020 21:30
