« previous next »

Author Question: If a principal and agent enter into a fixed-fee contract where the agent is paid a fixed wage A) ... (Read 53 times)

jho37

  • Hero Member
  • *****
  • Posts: 531
on: Jul 1, 2018
If a principal and agent enter into a fixed-fee contract where the agent is paid a fixed wage
 
  A) the principal bears all the risk.
  B) the agent bears all the risk.
  C) the principal and agent share the risk.
  D) Unable to determine with the information given.

Question 2

If a player has a dominant strategy in a simultaneous-move game, then she is sure to get her best outcome.
 
  Indicate whether the statement is true or false


joshraies

  • Sr. Member
  • ****
  • Posts: 351
Reply #1 on: Jul 1, 2018
Answer to Question 1

A

Answer to Question 2

False. Suppose player 1 has a dominant strategy in a two-player simultaneous move game. Then player two will choose the best response to that dominant strategy. This may not result in the highest payoff for player 1. The prisoners' dilemma is an example. All we can say for sure is that player 1 will achieve the highest payoff given the strategy of the opponent.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

Most fungi that pathogenically affect humans live in soil. If a person is not healthy, has an open wound, or is immunocompromised, a fungal infection can be very aggressive.

Nap master (fixed) Nap master (fixed)
Fixed bed state (i) and complete fluidization (ii) Fixed bed state (i) and complete fluidization (ii)
Overallocation of Labor to Farming When Farmworkers Are Paid Their Average Product Overallocation of Labor to Farming When Farmworkers Are Paid Their Average Product
What is the strongest oxidizing agent of the following set: MnCl2, Mn(OH)3, MnO2, KMnO4? What is the strongest oxidizing agent of the following set: MnCl2, Mn(OH)3, MnO2, KMnO4?
Sonja is paid $42.50 per hour as a veterinarian. She is paid 1 times the regular rate for all ... Sonja is paid $42.50 per hour as a veterinarian. She is paid 1 times the regular rate for all ...
Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ... Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ...
Video: Smoking Cessation

For a complete list of videos, visit our video library