Consider a game in which there are 3 people. each player can either participate or not participate in a revolution. if at least 2 people participate, the revolution succeeds. if the revolution succeeds, each player gets a benefit of b. if the revolution fails, each player gets a benefit of 0.

each player who participates bears a cost c < b, whether or not the revolution succeeds.

(a) write down each player’s best response correspondence.

(b) is it a nash equilibrium for no players to participate? why or why not?

(c) is there a nash equilibrium in which only one player participates? why or why not?

(d) is there a nash equilibrium in which only two players participate? why or why not?

(e) is it a nash equilibrium for all three players to participate? why or why not?

Your take on decision making process

Grant, inc., acquired 30% of south co.’s voting stock for $200,000 on january 2, year 1, and did not elect the fair value option. the price equaled the carrying amount and the fair value of the interest purchased in south’s net assets. grant’s 30% interest in south gave grant the ability to exercise significant influence over south’s operating and financial policies. during year 1, south earned $80,000 and paid dividends of $50,000. south reported earnings of $100,000 for the 6 months ended june 30, year 2, and $200,000 for the year ended december 31, year 2. on july 1, year 2, grant sold half of its stock in south for $150,000 cash. south paid dividends of $60,000 on october 1, year 2. before income taxes, what amount should grant include in its year 1 income statement as a result of the investment?

You plan to invest some money in a bank account. which of the following banks provides you with the highest effective rate of interest? hint: perhaps this problem requires some calculations. bank 1; 6.1% with annual compounding. bank 2; 6.0% with monthly compounding. bank 3; 6.0% with annual compounding. bank 4; 6.0% with quarterly compounding. bank 5; 6.0% with daily (365-day) compounding.