Home Page for Economics 141 (Current Topics in Microeconomics)
Economics 141, Current Topics in Microeconomics
Web Page
This page holds class material related to Economics 141,
including the syllabus, the reading list, and the scoreboard
for the in-class experiments. As we go along the course, I will
post homeworks, reading assignments, solution sets, and exam
study guides. Corrections to problem sets, solutions, and exam
study guides will also be posted here if necessary.
Paper for Problem Set #4
Results of the principal-agent game:
The equilibrium, assuming orange scoresheets are taken as a
signal of high effort cost, is salaries of either 6 or 3,
and agents to put forth effort. The average payoff to workers
is 1 or 0.5, and the average to principals is 3.33 or 5.83.
We played 5 rounds, so the expected score is 5 for orange
scoresheet players, 2.5 for white scoresheet players, and
22.9 for principals. Points awarded was your score if you
were a principal, score times 5 if you were an orange sheet
worker, and score times 5 plus 10 if you were a white sheet
worker.
Results of the asset game:
In equilibrium, all stocks should end up in the hands of
either Type I traders (state X) at a price of 275, or
Type II traders (state Y) at a price of 225. In state X,
Type I traders should score 2300 by buying 4 stocks,
and everyone else should score 2150 by selling 2. In
state Y, Type II traders should score 2500 by buying
4 stocks and everyone else should score 2050 by selling 2.
We played 2 rounds of state X and 3 of state Y, so scores
should have been 10,750 for Type 1, 11,800 for Type 2, and
10,450 for Type 3. Points awarded were your score divided
by 200.
Results of the auction game:
The equilibrium is not very interesting since no one plays it,
but you should bid up to your estimate minus 9 (on average the
high bidder has a +9 overestimate). The winner should make a
point (because it's a second-bid auction), and the average score
is thus 1/20 per round, or 1/2 total for 10 rounds. Most people
scored 0; I awarded 30 points for this, and if you lost points
(all winners did) I subtracted that from 30.
Current Standings:
| Jen Andriano | 421
|
| Ryan Artis | 355
|
| Jim Baron | 348
|
| Xing Ni Chen | 308
|
| Jackie Coffey | 377
|
| Taylor Coutant | 387
|
| Rosa Estepan | 357
|
| Erica Gierke | 323
|
| Alicia Gifford | 325
|
| Erica Kewley | 402
|
| Ian Leyden | 427
|
| Mu Dan Liu | 350
|
| Michelle Lombard | 401
|
| James Martin | 395
|
| Chris Murphy | 384
|
| Kristen Nelson | 286
|
| Andrew Polidore | 364
|
| Jerry Schulman | 266
|
| Brian Scordato | 340
|
| David Stone | 382
|
| Meng Kui Yan | 346
|
Need to contact Professor Stephen Schmidt? Then
click here.
Last modified April 10, 2005.