Under what circumstances do you think the government will impose greater regulations on financial markets and businesses? When does the government tend to favor deregulation and take a more laissez-faire attitude toward business?
(a) Consider the two-person Rubinstein-Stahl model of section 4.4. The two players bargain to divide a pie of size 1 and take turns making offers. The discount factor is 6. Introduce “outside options” in the following way: At each period, the player whose turn it is to make the offer makes the offer; the other player then has the choice among (1) accepting the offer, (2) exercising his outside option instead, and (3) continuing bargaining (making an offer the next period). Let x0 denote the value of the outside option. Show that, if x0 ≤δ/(1 + δ), the outside option has no effect on the equilibrium path. Comment. What happens if x0 > δ/(1 + δ)?
(b) Consider an alternative way of formalizing outside options in bargaining. Suppose that there is an “exogenous risk of breakdown” of re-negotiation (Binmore et al. 1986). At each period t, assuming that bargaining has gone on up to date t, there is probability (1 — x) that bargaining breaks down at the end of period t if the period-t offer is turned down. The players then get xo each. Show that the “outside opportunity” x0 matters even if it is small, and compute the subgame-perfect equilibrium.
(c) In their study of supply assurance, Bolton and Whinston (1989) consider a situation in which the outside option is endogenous. Suppose that there are three players: two buyers (i = 1, 2) and a seller (i = 3). The seller has one indivisible unit of a good for sale. Each buyer has a unit demand. The seller's cost of departing from the unit is 0 (the unit is already produced). The buyers have valuations v1 and v2, respectively. Without loss of generality, assume that v1 ≥ v2. Bolton and Whinston consider a gen-eralization of the Rubinstein-Stahl process. At dates 0, 2, …, 2k, …, the seller makes offers; at dates 1, 3, …, 2k + 1, the buyers make offers. Buyers' offers are prices at which they are willing to buy and among which the seller may choose. The seller can make an offer to only a single buyer, as she has only one unit for sale (alternatively one could consider a situation in which the seller organizes an auction in each even period). Consider a stationary equilibrium and show that, if parties have the same discount factor and as the time between offers tends to 0, the parties' perfect-equilibrium payoffs converge to v1/2 for both the seller and buyer 1 and to 0 for buyer 2 if v1/2 > v2, and to v2 for the seller, v1 — v2 for buyer 1, and 0 for buyer 2 if v1/2 <>2. (For a uniqueness result see Bolton and Whinston 1989.)
Shamrock Oil has decided to rely on utility theory to assist in the decision concerning the oil field. The following table describes its utility function; all monetary values are in thousands of dollars:
(a) Redo Problem 37 using this information.
(b) How can you best describe Shamrock Oil’s attitude toward risk? Justify your answer.
Problem 37
Shamrock Oil owns a parcel of land that has the potential to be an underground oil field. It will cost $500,000 to drill for oil. If oil does exist on the land, Shamrock will realize a payoff of $4,000,000 (not including drilling costs). With current information, Shamrock estimates that there is a 0.2 probability that oil is present on the site. Shamrock also has the option of selling the land as is for $400,000, without further information about the likelihood of oil being present. A third option is to perform geological tests at the site, which would cost $100,000. There is a 30% chance that the test results will be positive, after which Shamrock can sell the land for $650,000 or drill the land, with a 0.65 probability that oil exists. If the test results are negative, Shamrock can sell the land for $50,000 or drill the land, with a 0.05 probability that oil exists. Using a decision tree, recommend a course of action for Shamrock Oil.
The scatterplot below shows fabricated data for the price per share versus earnings per share per year of 100 public corporations. The average earnings per share is$9.75 per year with an SD of $5.98 per year, and the average price per share is$52.94 with an SD of $33.16. The correlation between price and earnings is0.891. (Use this figure in your calculations, not the value of the correlation coefficient in the applet.)The regression line estimate of the price per share of a company whose annual earnings per share is $33.67 is $ ??
As this chapter has indicated, IBM has been a dominant force in the computer industry since the late 1950s. Why do you think this is the case? More specifically, why were so many large U.S. corporations seemingly committed to “Big Blue” (as IBM is affectionately known), at least until the early 1990s?
Comparative Business Ethics and Social Responsibility Assignment – Case Study
Textbook – Ferrell, Fraedrich & Ferrell (11th Edition) Business Ethics: Ethical Decision Making and Cases on pp.528 – 534 available in your campus library: Case Insider Trading at the Galleon Group.
Case – Insider Trading at the Galleon Group
QUESTIONS –
1. Are information-gathering techniques like Rajaratnam's common on Wall Street? If so, what could regulators, investors, and executives do to reduce the practice?
2. What are the implications of sharing confidential material information? Is it something that would affect your decision about how to trade a stock if you knew about it?
3. Do you think the secret investigation and conviction of Rajaratnam and other people in the Galleon network will deter other fund managers and investors front sharing non-public information?
Format: Report format, times new roman, 12 point, 1.5 line spacing. The report needs to consist at least the following:
a. Executive Summary: ideally one page but no more than two.
b. Sections 1: Introduction
c. Section 2: Main body of the report consisting the 3 questions at the end of case study
d. Sections 3: Conclusions
e. Reference List (10-20 references).
f. Structure
Attachment:- Case.rar
When starting a business, why may a cheap location for the business not always be the best location?
Compare the physical assessment of a child to that of an adult. In addition to describing the similar/different aspects of the physical assessment, explain how the nurse would offer instruction during the assessment, how communication would be adapted to offer , and what strategies the nurse would use to encourage engagement.
International and intercultural communication
After reviewing section 2.4 of the text titled International and Intercultural Interpersonal , visit () and continue to explore national cultural dimensions. Here you will choose two countries to compare and contrast in terms of cultural dimensions.
Develop a two-page, APA-formatted paper that addresses the following:
Describe how the two countries are similar in terms of Hofstede’s six
Describe how the two countries are different in terms of Hofstede’s six cultural dimensions.
Given a scenario where two organizations, one located in each country, are to do business with each other, provide recommendations that would be beneficial in helping management address communications in terms of the different cultural perspectives. Your paper must be two pages (not including title and reference pages) and must be formatted according to APA style as outlined in the approved APA style guide. You must cite at least two scholarly sources in addition to the textbook
APA
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