Free Essay

Rational Pigs

In: Other Topics

Submitted By esporro
Words 358
Pages 2
The Rational Pigs.

Here is a question posed in the book by John McMillan, Games, Strategies and Managers.

Two pigs, one dominant and the other subordinate, are put in a box. There is a lever at one end of the box which, when pressed, dispenses food at the other end. Thus, the pig that presses the lever must run to the other end; by the time it gets there, the other pig has eaten most, but not all, of the food. The dominant pig is able to prevent the subordinate pig from getting any of the food when both are at the food. Assume that pig survival depends upon getting the most food it possibly can, which pig will press the lever?

The Rational Pigs.

To answer this
Assume
• 6 units of grain are delivered.
• That pressing the lever and running to the other end involves effort, equivalent to ½ unit of grain
• Each could press the lever simultaneously but the subordinate pig could run faster.

Dominant Pig: Press Don’t Press
Subordinate Pig:
Press (1.5, 3.5) (-0.5, 6)
Don’t Press (5, 0.5) (0, 0)

Clearly, the subordinate pig has a dominant strategy (Don’t press). Why? Because his payoffs from pressing the lever are 1.5 and -0.5. If he doesn’t press the lever his payoffs are 5 or 0. In other words, as 5 is greater than 1.5 and 0 is greater than -0.5, it will always pay the subordinate pig to stop at the end where the food is released. This is a ‘rational’ choice. The ‘rational’ dominant pig should see this and press the lever. The equilibrium in this instance is the bottom left hand payoff of 5 units of food for the subordinate pig and 0.5 units for the dominant pig.

Amazing I know but there are lots of instances when the less dominant player can win a game if rationality prevails. Of course, this is a one-shot game and other things may prevail but the strict logic of game theory shows that it is possible for smaller players to win out in certain circumstances.…...

Similar Documents

Free Essay

Mba Rational

...MBA Rational MGT/521 10/06/2012 Richard Bowman Abstract In this paper the subject to address are the objections to obtain an MBA and argue the points with reason to obtain an MBA. The three main objections to entering an MBA program are: 1) Cost 2) Time and effort required 3) Job availability in the current economic slowdown. Each argument against obtaining an MBA is countered with evidence that supports reasoning to obtain an MBA at almost any time, personal situation or career position. MBA Rational While an MBA might improve your quantitative, presentation, and communication skills, it might even get you thinking about ethics and strategy. However, one to two years of case studies aren’t going to turn you into a leader if you weren’t born one. There’s no learning charisma, persuasiveness, elegance, or gut instinct. This is why an MBA is no guarantee of advancement or even a job. Many MBAs find that they are not advancing and that, even in some circumstances, that they cannot find a job at all. This can be a very unfortunate situation, and yet it is important to acknowledge as a possibility for anyone going into an MBA program. This is particularly true in a down economy. Quitting your job to get an MBA, therefore, has risks that are important to acknowledge. Throughout my career, I've been in mainly in the financial services. My Bachelor's is in Business Management. I enjoy the creativity and personal interaction that the industry offers;......

Words: 680 - Pages: 3

Premium Essay

Three Pigs

...Three Little Pigs: Four Interpretations - An Exercise in Paraphrasing By The Walden University Writing Center Staff   This exercise is designed to help you improve your paraphrasing skills. You will also get practice at writing a compare-and-contrast interpretive paper, which will help you with the process used in your doctoral study and other course papers. Three interpretations of the classic tale of the Three Little Pigs appear here, along with a mini-research study about wolves and pigs. To help you improve your writing skills, you can approach these pages in two ways: First, read the assigned questions below. Then read the four short interpretive texts. Next, take some time to write a brief paper in which you answer the questions posed at the beginning. Were you able to summarize easily using your own words? Were you able to write without having the original source open in front of you? Did you include proper in-text citations? Assigned Questions 1. In no more than four paragraphs, summarize the story of the three pigs. (Refer to any of the four interpretations for direct quotes.) 2. Compare and contrast these four interpretations of the story, using direct quotes and paraphrases as appropriate. Try not to be judgmental; use the author's evidence for support. 3. Offer a brief critical analysis of the interpretations. What were the strengths and weaknesses, if any, of each?  Three Little Pigs: Four Interpretations Gomez (1999)            ...

Words: 1765 - Pages: 8

Premium Essay

Rational Expectation

...RATIONAL EXPECTATION While rational expectations is often thought of as a school of economic thought, it is better regarded as a ubiquitous modeling technique used widely throughout economics. The theory of rational expectations was first proposed by John F. Muth of Indiana University in the early 1960s. He used the term to describe the many economic situations in which the outcome depends partly on what people expect to happen. The price of an agricultural commodity, for example, depends on how many acres farmers plant, which in turn depends on the price farmers expect to realize when they harvest and sell their crops. As another example, the value of a currency and its rate of depreciation depend partly on what people expect that rate of depreciation to be. That is because people rush to desert a currency that they expect to lose value, thereby contributing to its loss in value. Similarly, the price of a stock or bond depends partly on what prospective buyers and sellers believe it will be in the future. Expectational Error Models of the Business Cycle A long tradition in business cycle theory has held that errors in people’s forecasts are a major cause of business fluctuations. This view is embodied in the phillips curve (the observed inverse correlation between unemployment and inflation), with economists attributing the correlation to errors people make in their forecasts of the price level. Before the advent of rational expectations, economists often proposed to...

Words: 306 - Pages: 2

Free Essay

Pigs

...When evaluating inventory impairment for the PIGS entity, it depends specifically on the character and composition of the inventory. The method used should clearly reflect the income of that period by applying the rule of lower of cost of market to each item or on a total inventory basis. If the company evaluates impairment by product line, there must be more than one major product that exists. This company does have more than one product line that exists consisting of: live hogs for sale, developing animals, and processed pork products. They seem to apply the accounting ideas of raw materials, work-in-process, and finished goods. The live hogs for sale and developing animals are stated to be processed and sold as the finished goods of processed pork products. Even though the most generally used method of lower of cost or market is to be applied separately to each item in the inventory, there is evidently only one-end product category of the total stock. Significantly, the only end-product of the inventory is processed pork products which apply the total inventory basis. There was a reduction in cost prices for certain inventory of live hogs and developing animals, but there was no loss in income since they expected to recover the cost of the inventory due to substantial evidence within the company. This specifically means that the company should apply the method on a total inventory basis because this specific inventory will enter the same category of finished product in a......

Words: 255 - Pages: 2

Premium Essay

Rational Expectation

...Is the assumption of rational expectations sufficient to ensure policy neutrality? Expectations play a vital role in determining the behaviour of the economy. How agents respond to a policy decision is critical to understanding the size and direction of the economy. For example agents make decisions to buy/sell stocks depending on their expectations of future profits or future interest rates. Therefore policy makers should take into account the expectations of people who make choices that affect future outcomes. In addition to agents’ expectations of future, we need to consider what information is available to the agent and based on what kind of knowledge does the agent make a decision at the first period (t). Previously economists modelled expectations on recent past information available to agents which the agents than used to adapt to the current situation; this form of adaptive expectations behaviour means that agents learn from past experience to expect future event, which means that adaptive expectations will be useful when future events are the same as past. Let’s look at a simple example of adaptive expectations (AE) first to lay the foundation for the other important and more relevant assumption of rational expectations (RE). If we had an inflation rate today of 3%, agents who use AE will forecast that next period’s inflation rate as 3%. So, with this basic example of AE we would have π ’ π t − 1 Where inflation expected is equal to the lagged inflation rate....

Words: 2246 - Pages: 9

Free Essay

Pig Out

...Pig-out BBQ, Inc. Our Pork is Smokin'! Corporate Offices 24 Hickory Smoke Drive East Bumble, Alabama 30699 TO: THE LAW FIRM FM: Ronald T. Dumpp, Chief Executive SUBJ: Legal Advice Dear Lawyer, After a few recent events surrounding our purchase and use of "Evershine Flooring" by FloorCo, Inc., I felt it best that I write to you and ask for your formal legal opinion about this matter. I'll try and give you all the facts as best I can in this letter because I'm going to Barbados for three weeks and I will be unavailable during that time. About eight months ago, we were approached by a representative from FloorCo Inc. regarding a rather remarkable new product that they had created. The representative told us that FloorCo had created a new process whereby they could fabricate a commercial hardwood flooring that retained a durable glossy shine "virtually forever." They called this new flooring "Evershine." As you know, all of our barbecue restaurants have hardwood floors. The hardwood floors provide us with a "country" atmosphere that our customers expect when they walk into a Pig-Out restaurant. We have spent hundreds of thousands of dollars over the last eight years just maintaining the floors in our restaurants nationwide. We thought that this might be a wonderful opportunity to enhance the appearance of our restaurants while at the same time cut down on our huge maintenance costs. We agreed to discuss it at a board meeting and contact......

Words: 1418 - Pages: 6

Premium Essay

Rational Valuation

...1. What does the article mean when it says that ‘rational valuation took holiday’? Rational valuation took holidays means that the investors are no longer rational because people will tend to follow trends and be influenced by peer group pressure. There are three major factor why investor tend to become irrational. The first is the one that received the most publicity during the late 1990s by private individuals; millions were lured into the more fashionable sectors of the equity markets, notably technology. Improved access to information and dealing facilities through the internet fuelled the expanded participation, often by so-called ‘day traders’. Second, professional investor have failed to provide a proper balance. Portfolio managers have been drawn towards relative performance, with the help to increasingly varied complicated stock market indices, and risk control model. This can be seen from Vodafone, which accounted for 13 per cent off London’s All-Share Index at one stage, was generally regarded as a low-risk holding relative to the index, whereas in absolute terms it actually carried a high risk, though with a share price down only ‘only’ 51 per cent it has not turned out to be as risky as some (not yet, anyway). Fund managers who held out against the irrational fashion of 1999 and early 2000 faced a big risk of being washed away by the tide, although if they survived they will performed very well recently. Third, the market’s institutional......

Words: 368 - Pages: 2

Premium Essay

Rational Approach

...Rational Approach Grant Bowden BUSI 610 Liberty University Abstract This paper begins with a concise introduction on the rational approach. From there the paper moves into defining the rational approach as it relates to decision-making. Next, the paper makes mention of Benjamin Franklin utilizing “pros” and “cons” in his decision making process”. Following this, there is a quick mention on uncertainty as it relates to financial risk as well as a brief mention of a step-based rational decision-making approach. After the definition section there is an application section which deals largely with uncertainty as well as intuition of a decision maker. It is argued that the rational approach fails to address certain aspects of uncertainty but does allow for improved decision making as a whole. Finally, the paper concludes concisely noting that the rational approach is not fully achievable in the context of the real world as it is intended for an ideal state bounded by rational criterion. Rational Approach The rational approach to individual decision-making allows for managers to operate in the context of an ideal systematic method. Decision-making, particularly in the context of an organization, can be difficult with significant complexity and multi-faceted dimensions. Operating outside of a specific framework can increase the difficulty for managers to make the best possible rational solution resulting in arbitrary and sometimes non-optimal decisions. The......

Words: 1529 - Pages: 7

Free Essay

Bay of Pigs

...Yesenia Duran Feb. 12, 2015 PSCI 320 Bay of Pigs The chapter begins the correspondence of letters written between John F. Kennedy and Nikita Khrushchev. The letters begin with Khrushchev congratulating Kennedy on winning the election, he declares his respect for the United States and that the USSR is prepared to develop a friendly relationship between the two countries. Khrushchev believed that Kennedy will take a soft response on foreign policy and is prepared to take full advantage of the situation. Feeling overwhelmed with his immediate responsibilities Kennedy brushes off Khrushchev first letter with a short response agreeing that everlasting peace is also a focus of the United States and thanking him for his kindness. Kennedy has become aware that Khrushchev has two different sides one that wants and dreams of world peace and another that wants to become extremely powerful. In his second letter to Khrushchev, Kennedy states that although there are many topics that these countries will not be able to agree on the manner in which these topics are approached and handled is of great importance. He also reemphasized the responsibility that rest upon the Unites States and the USSR in world affairs, following this letter everything remains “peaceful.” On April 18th, 1961 Khrushchev writes to Kennedy in response of to the Pay of Pigs invasion in Cuba. Khrushchev is fully aware that the order came from the United States and makes it clear that the USSR will render the......

Words: 459 - Pages: 2

Free Essay

Bay of Pigs

...Bay of Pigs: America’s biggest blunder Name History 102 Professor W July 13, 2014 It’s no surprise that the Bay of Pigs is named as one of America’s worst battles in History. It is not considered one of the worst battles because America was simply overpowered either. The U.S. mistakenly sent over a thousand inexperienced men into a hostile area with very little equipment, no support, and no element of surprise. The battle was poorly thought out and badly executed from the planning stages through the execution. In 1959 communist Fidel Castro led an armed group of rebels in the successful overtaking of U.S. backed Cuban leader Fulgencio Batista. (John F Kennedy, n.d.) After assuming power, Castro first tried convincing everyone he was not communist. He had initially turned towards the U.S. looking for help, but was turned away. He then turned toward the Soviet Union and received $100 million in aid. (Wilbanks, 2014) The U.S. became uncomfortable with Castro’s bond with Russia and started boycotting Cuba. This caused Castro to attack U.S. companies in Cuba and form an even closer relationship with Russian leader Nikita Khrushchev. Fearing the rise of communism in Cuba and the close relationship with the Soviet Union, President Eisenhower turned to the CIA to develop a plan to overthrow Fidel Castro. President Eisenhower’s CIA created the original plan of recruiting Cuban exiles and training them to lead a revolt in Cuba. The revolt was...

Words: 1152 - Pages: 5

Free Essay

Bay of Pigs

...The Bay of Pigs One of the most embarrassing things about the United States is the failed invasion of Cuba at the Bay of Pigs. President at the time, John F. Kennedy, along with his administration, was the main one to blame for the failure of this invasion. This event was probably what led to the Cuban Missile Crisis, which comes later on. The main objective of the invasion was to end communism in Cuba by putting an end to its leader, Fidel Castro (Hanson n.p). Unfortunately the invasion failed and Cuba still remained communist for many years. Before becoming the dictator of Cuba, Fidel Castro led a revolution to overthrow the regime of General Batista. Castro, along with a group of rebels, was successful in overthrowing Batista and later, became the new dictator of Cuba (DePalma n.p). This raised concern for the United States because now Communist Cuba posed a threat to our country. Communism is defined in the dictionary as, a system where the government owns all means of production. The United States has always been anti-communist, so a country so close to our shores had to be taken seriously. The plan to invade Cuba was actually already in place before President John F. Kennedy was elected. The Central Intelligence Agency was planning the invasion when President Eisenhower was in office. Although he did not plan the invasion all by himself, John F. Kennedy was still held responsible for the failure. The plan consisted of training roughly about 1,400 Cuban exiles that......

Words: 640 - Pages: 3

Free Essay

Rational Decision

...consequences that may arise. The rational decisions presuppose the best possible outcome and also reduce chances of potential risks and biases in the decision making process. Despite its accuracy, most everyday life decisions are made by individual’s perceptions due to its high demand in time and bound rationality. The perceptual decision makings are quick-step thinking process and can be effective in everyday activities. However, these perceptual decisions can be impinged upon the perceptual errors or distortions, leading to failure in selecting right decisions. In economic view, these perceptual decisions can be employed by entrepreneurs or managers to increment their assets of the organisations. Therefore manager should concentrate on both rationality and perception to make more appropriate decision making. The rational decision making is a systematic process in identifying problems and generating most logical, effective choice to address the problem. To make rational decisions, the information must be sufficient and reliable, and low on risk level. The decision’s rationality depends on the specification of models, and different models impose different rational decisions. Managers evaluate these rational decisions and select the optimal decision. Marcel (2011, p. 371) states that a real-life decision problems can be framed into different models, which represents different rational decisions that could be made by an individual. He remarks on how rational decision making......

Words: 1104 - Pages: 5

Free Essay

Pigs

...PIGS España, Grecia, Italia y Portugal “Crisis económica, austeridad, deuda, Pacto de Estabilidad y Crecimiento” Enrique Rubio | Irina Santin | Jaume García Lara Bernabéu | Victoria Machado 9 de Mayo de 2015 1   Crisis Económica desde los países periféricos de la Eurozona     “PIGS  in  Muck”   CAUSA “Hace  ocho  años,  los  cerdos  llegaron  realmente  a  volar.  Sus  economías  se  dispararon  después   de  unirse  a  la  eurozona.  Ahora  los  cerdos  están  cayendo  de  nuevo  a  9erra”   Tipos  de  interés   Financian  burbujas  inmobiliarias     Acceso  masivo  al  crédito   CONSECUENCIA Crisis  económica   Incer9dumbre  sobre  financiación   Confianza MEDIDAS UE Fondo  de  rescate  para   economías  débiles Inyección  de  liquidez     Indicadores interrelacionados   q  La  prima  de  riesgo   q  Tipo  de  interés  a  los  que  9enen  que  hacer   frente  para  la  colocación  de  la  deuda.     q  Nota  de  solvencia  por  parte  de  las   agencias  calificadoras     2   Alivio  ataques  especula9vos   Bajas  perspec9v as    económicas     as  de   Altas  tas nto ......

Words: 1711 - Pages: 7

Premium Essay

Three Pigs

...You are here: Home / Transmedia Storytelling / Case Study Example: The Three Little Pigs Case Study Example: The Three Little Pigs If the Three Little Pigs were told as a transmedia story it might be designed like this: The basic story would be told in an anchoring medium, such as a novel, TV show, or film. The wolf has a companion website would give us opportunities to learn more him, the path that led the wolf to his current antisocial tendencies, and give us a glimpse of his inner genius, such as showing his mathematical schematics of the impact of wind velocity on the materials of straw, sticks and bricks. We would also be able to find maps of the turnip field, apple tree, local market and County Fair and strategic attack positions. We would follow the wolf as he plots and adjusts his plans at each volley by the pigs. On a Ning network, Wolf supporters form Team Wolf and contribute strategy, information, additional maps, and alternate endings and plot developments. On a blog, the first little pig details the family history, his paranoid suspicions of a dark figure lurking about his house that led to the pigs decision to live apart rather than together. An Anime comic takes fans on the first little pig’s visions of a pig super hero saving the world and avenging evil as personified by wolves. The second little pig Tweets his chronicle, seeking advice on sustainable building materials and the relative merits of straw and sticks from other Twitterers, and relaying......

Words: 831 - Pages: 4

Premium Essay

Rational Management

...Management process, linear and nonlinear management, ordinary and extraordinary management, rational management, chaos theory Management - from rational management to chaos theory Submitted to Dr. D. Coleman By JJ de Klerk In partial fulfillment of the requirement for the Doctorate in Business Administration Swiss Management University March 3, 2012 1 1. Introduction Developments over the last few decades have led to a new way of thinking in economic and management approaches. The scientific approach to management, which emphasizes the basic management functions of planning, organizing, leadership and control, now seems unable to explain the era of change that characterizes economies and organizations alike. This paper will focus on explaining the rational management model, focusing on ordinary management, and go on to discuss the new approaches such as chaos theory – also called complexity theory - and the need for extraordinary management and innovation. 2. Rational management Management and organization science literature have until recently focused on the objective control of agents and worked on the assumption that interactions can be described in linear terms (Webb, 2005). When difficult decisions have to be made, many managers and strategists rely on the economics view in which profit maximization is the guiding principle. Executives will us the rational model tools described above, and believe that precise solutions should be achieved through......

Words: 2151 - Pages: 9

Berlin Station S03E04 | Share-Online | IMDb: 6 HD The Young Karl Marx