. An engineer has a talent t in (1,2) with equal probability (prob=1/2), and the value of t is private information to the engineer. The engineer's pure strategies are applying for a job or being an entrepreneur and doing a startup. . The company's pure strategies are either hiring or not hiring the engineer. . If the engineer applies for the job and the company does not hire, then the engineer becomes an entrepreneur and does a startup. . The utility of the engineer is t (talent) from being an entrepreneur, and w (wage) from being hired. . The utility of the company is (t-w) from hiring the engineer and 0 otherwise. . These are pictured in the payoff matrices below, with the engineer being the row player and the company being the column player. t=2 Hire Not Startup 2,0 2,0 Work w,2-w 2,0 t=1 Hire Not Startup 1,0 1,0 Work W,1-W 1,0 Suppose w = 1, which of the below are pure strategy Bayesian equilibria, there may be more than one and check all that apply. (Form: Engineer's strategy, company's strategy) a) (t = 2 Work, t = 1 Startup, Hire); b) (t = 2 Startup, t = 1 Work, Hire); c) (t = 2 Startup, t = 1 Work, Not); d) (t = 2 Work, t = 1 Startup, Not); 5.

Introductory Circuit Analysis (13th Edition)
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ISBN:9780133923605
Author:Robert L. Boylestad
Publisher:Robert L. Boylestad
Chapter1: Introduction
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2
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An engineer has a talent t in (1,2) with equal probability (prob=1/2), and the value of t is private information to the engineer.
The engineer's pure strategies are applying for a job or being an entrepreneur and doing a startup.
.
The company's pure strategies are either hiring or not hiring the engineer.
.
If the engineer applies for the job and the company does not hire, then the engineer becomes an entrepreneur and does a startup.
.
The utility of the engineer is t (talent) from being an entrepreneur, and w (wage) from being hired.
.
The utility of the company is (t-w) from hiring the engineer and 0 otherwise.
.
These are pictured in the payoff matrices below, with the engineer being the row player and the company being the column player.
t=2
Hire
Not
Startup
2,0
2,0
Work
w,2-w
2,0
t=1
Hire
Not
Startup
1,0
1,0
Work
W,1-W
1,0
Suppose w = 1, which of the below are pure strategy Bayesian equilibria, there may be more than one and check all that apply.
(Form: Engineer's strategy, company's strategy)
a) (t = 2 Work, t = 1 Startup, Hire);
b) (t = 2 Startup, t = 1 Work, Hire);
c) (t = 2 Startup, t = 1 Work, Not);
d) (t = 2 Work, t = 1 Startup, Not);
5.
Transcribed Image Text:. An engineer has a talent t in (1,2) with equal probability (prob=1/2), and the value of t is private information to the engineer. The engineer's pure strategies are applying for a job or being an entrepreneur and doing a startup. . The company's pure strategies are either hiring or not hiring the engineer. . If the engineer applies for the job and the company does not hire, then the engineer becomes an entrepreneur and does a startup. . The utility of the engineer is t (talent) from being an entrepreneur, and w (wage) from being hired. . The utility of the company is (t-w) from hiring the engineer and 0 otherwise. . These are pictured in the payoff matrices below, with the engineer being the row player and the company being the column player. t=2 Hire Not Startup 2,0 2,0 Work w,2-w 2,0 t=1 Hire Not Startup 1,0 1,0 Work W,1-W 1,0 Suppose w = 1, which of the below are pure strategy Bayesian equilibria, there may be more than one and check all that apply. (Form: Engineer's strategy, company's strategy) a) (t = 2 Work, t = 1 Startup, Hire); b) (t = 2 Startup, t = 1 Work, Hire); c) (t = 2 Startup, t = 1 Work, Not); d) (t = 2 Work, t = 1 Startup, Not); 5.
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