Instructors Resources CD-ROM This CD-ROM includes ■ All figures and images from the textbook (in JPEG and MS PPT for- mats) ■ Brief chapter outlines for aid in preparing class lectures (MS Word) ■ Notes to the Instructor providing additional examples and ways to engage students in the study of text material (Adobe PDF) ■ […]
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Probability and Expectation Probability and Expectation The intelligence community has jargon to describe the likelihood of different events.2 To say that an event—such as a country’s developing a nuclear weapon in the next five years—is of the lowest likelihood is to call the event “conceivable.” To assert that the event is more likely, but the
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Making Decisions under Uncertainty Making Decisions under Uncertainty IF THE DRUG DEALER IS making a random decision between going to the park and selling on a street corner, a police officer who is deciding where to patrol faces an uncertain outcome. If she patrols the park, the extent of her success in dis- rupting the
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An arms buildup is thought to have been a contributing factor to World War I. An arms buildup is thought to have been a contributing factor to World War I. An arms buildup is thought to have been a contributing factor to World War I. The naval arms race between Germany and Great Britain is
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Return to the Price Competition with Identical Products game of Section 6.2 Return to the Price Competition with Identical Products game of Section 6.2. Now assume that shop 2 has a cost of 15, while shop 1 still has a cost of 10. Make the (admittedly arbitrary) assumption that if both shops set the same
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In some presidential elections, there is a serious third-party candidate. In some presidential elections, there is a serious third-party candidate. In 1992, Ross Perot, running as an independent against Democratic nominee Bill Clinton and Republican nominee George Bush, garnered a respectable 19% of the vote. More recent third-party presidential at- tempts were made by Ralph
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A game theorist is walking down the street in his neighborhood and finds $20. A game theorist is walking down the street in his neighborhood and finds $20. A game theorist is walking down the street in his neighborhood and finds $20. Just as he picks it up, two neighborhood kids, Jane and Tim, run
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SITUATION: CHARITABLE GIVING AND THE POWER OF MATCHING GRANTS In this final example, payoff functions are not hill shaped and, in fact, are not even continuous. This means that the method used in the previous two exam- ples will not work here. So why do I present this example? First, it is a re- minder
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SITUATION: TRAGEDY OF THE COMMONS—THE EXTINCTION OF THE WOOLLY MAMMOTH At the end of the Pleistocene era, there was a mass extinction of more than half of the large-mammal species in the Americas, including the woolly mammoth. One prominent hypothesis is that the extinction was caused by hunting. Evidence of a large human population in
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SITUATION: PRICE COMPETITION WITH DIFFERENTIATED PRODUCTS Our first example in this chapter was the case of shops selling the same goods. In that simple setting, consumers cared only about price, so if one store charged a lower price, they would all buy from it. In most markets, however, companies offer distinct products. You can buy
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