Some foolish teenagers play "chicken" on Friday nights. Two teenagers drive their cars at each other at high speeds. The first to swerve to the side is the "chicken" and loses. If both swerve out of the way, they are both chicken and both lose. Neithe4r of the drivers wants to get into an accident. It causes a significant loss in utility (possibly death). However, both do not want to be known as a chicken. This causes some loss in utility. What is the equilibrium of this game? Do you think the two drivers will necessarily produce an equilibrium outcome? Do you think the chances are better or worse for achieving and equilibrium outcome if the tow players know each other? Explain. Do you think it matters whether the two players have played the game before? Explain.

Part 1
Entrepreneur Jones has a utility index of 5 for a loss of $1,000, and 12 for a profit of $3,000. He says that he is indifferent between $10 for certain and the following lottery: a 0.4 chance at a $1,000 loss and a 0.6 chance at a $3,000 profit. What is his utility index for $10?
Part 2
Suppose that Smith has a uti

The Utility Marketing Model has 4 components. These components can help educate business professionals in understanding customer purchasing patterns. The utility marketing model considers convenience, feelings, and how easy it is to get the item it their time frame. This solution looks at each of the components.

1- An agent, with wealth 50, faces a probability 0.2 of a loss 35. The agent is offered insurance at a premium rate of 0.25. The agent has the von Neumann-Morgenstern utility function, u=lnx, where x is wealth. How much insurance should the agent buy?
2 - Show that a risk averse agent offered terms worse than actuarially fair

You are choosing between two goods, X and Y, and your marginal utility from each is as shown below. if your income is $9 and the price of X and Y are $2 and $1, respectively,
Units of X Marginal Utility for X
1 10

The utility of each individual is u(w) = 80w − w^2, where
0 ≤ w ≤ 40 is wealth. The initial wealth is $40. The individuals may
suffer a loss of $30. There are two types of individuals. Either an
individual has low risk of loss, in which case the probability of loss is 1/5 , or high risk, in which case the pr

Based on the table, graph the total utility curve of Chad Hobbs for buffalo wings. Secondly, calculate the marginal utility between each point and plot the corresponding graph. Why is the slope of the MU curve negative?
Chad's Utility Function
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# of wings

The attached table displays George's consumption of soda pop and pretzels. The price of each soda pop is $2.00 and the price of each pretzel is $5.00.
A. Fill in the missing total utility, marginal utility, and marginal utility/price (MU/Price). Place the final answer for each in the correct shaded area within the table.