This is a question and answer assignment. The answers are to be answered thoroughly. The answers to the questions must be referenced from the corresponding chapters. I have uploaded chapters 9 and 10 on the files which is where the answers need to come from and no where else. Please do not site anything from the chapters but simply look at what the chapter says and then use that to answer the question thoroughly. Each answer will need to be 5-6 sentences (thoroughly) and the answer will need to completely be from the chapter without being sourced.Again the answer you get from the chapter can be a reference that does not require a citation and is in your own words. The chapters and their questions are below with the correspondong chapters attached as word documents. Please do not include a cover page.
Chapter 9: 1. Define game theory.2. Understand simple diagrams that depict games in strategic (normal) form.3. Define dominant strategy.4. Explain the economics of a prisoner dilemma and provide examples of how these dilemmas can arise within firms.5. Determine (pure strategy) Nash Equilibria in simple two-person games.6. Define mixed strategy and describe why managers might sometimes choose to use one.7. Understand simple diagrams that depict sequential games in extensive form.8. Apply backward induction to find the equilibrium in two-person sequential games.9. Define first-mover advantage.10 Describe the key managerial insights obtained from game theory.
Chapter 10:
1. Define the firm as a focal point for a set of contracts.
2. Identify important owner-manager conflicts, as well as other potential stakeholder conflicts.
3. Explain how contracts can be used to help control incentive problems.
4. Explain how asymmetric information can increase the costs of contracting.
5. Differentiate between adverse selection problems and moral hazard problems.
6. List the components of agency costs.
7. Discuss how implicit contracts and reputational concerns can sometimes reduce incentive problems and contracting costs.
8. Explain why all the firms stakeholders potentially have a common interest economizing on contracting costs.
