Exam 14: Torts and Contracts
Exam 1: Introduction to Game Theory35 Questions
Exam 2: Noncooperative, One-Time, Static Games86 Questions
Exam 3: Focal-Point and Evolutionary Equilibria32 Questions
Exam 4: Infinitely-Repeated, Static Games37 Questions
Exam 5: Finitely-Repeated, Static Games40 Questions
Exam 6: Mixing Pure Strategies51 Questions
Exam 7: Static Games With Continuous Strategies24 Questions
Exam 8: Imperfect Competition52 Questions
Exam 9: Perfect Competition and Monopoly33 Questions
Exam 10: Strategic Trade Policy35 Questions
Exam 11: Dynamic Games With Complete47 Questions
Exam 12: Bargaining54 Questions
Exam 13: Pure Strategies With Uncertain Payoffs65 Questions
Exam 14: Torts and Contracts45 Questions
Exam 15: Auctions44 Questions
Exam 16: Dynamic Games With Incomplete Information34 Questions
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-Consider the game depicted in Figure 14.3, which summarizes the payoffs to a tortfeasor and an injured person resulting from an act of negligence. This situation most likely represents which of the following tort law regimes?

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(Multiple Choice)
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Correct Answer:
A
-Consider the game depicted in Figure 14.8, which summarizes the payoffs to a tortfeasor and an injured person resulting from an act of negligence. This situation most likely represents which of the following tort law regimes?

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Correct Answer:
C
Suppose that the cost of avoiding an accident if a motorist and pedestrian adopts a diligent strategy is $2. If an accident occurs, the pedestrian incurs accident costs of $30. If both players adopt a negligent strategy, the probability of an accident is 0.1. If either player adopts a diligent strategy, there is 0.05 chance that an accident will occur. If both players adopt a diligent strategy, the probability that an accident will occur is 0.01. The Nash equilibrium strategy profile for a no-liability tort law regime is:
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-Consider the game depicted in Figure 14.4, which summarizes the payoffs to a tortfeasor and an injured person resulting from an act of negligence. The Nash equilibrium strategy profile for this game is:

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-Consider the game depicted in Figure 14.12. If a motorist hits a pedestrian, the pedestrian incurs accident costs of $50. The cost of being diligent for both players is $5. If both players are diligent, the probability that an accident will occur is 5 percent. The payoffs from alternative strategy profiles suggest that the prevailing tort law regime is:

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-Consider the game depicted in Figure 14.7, which summarizes the payoffs to a tortfeasor and an injured person resulting from an act of negligence. The Nash equilibrium strategy profile for this game is:

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_____ is created largely by judges as a by-product of deciding cases is:
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-Consider the game depicted in Figure 14.10. If a motorist hits a pedestrian, the pedestrian incurs accident costs of $50. The cost of being diligent for both players is $5. If both players are diligent, the probability that an accident will occur is 5 percent. The payoffs from alternative strategy profiles suggest that the prevailing tort law regime is:

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-Consider the game depicted in Figure 14.6, which summarizes the payoffs to a tortfeasor and an injured person resulting from an act of negligence. This situation most likely represents which of the following tort law regimes?

(Multiple Choice)
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Suppose that the cost of avoiding an accident if a motorist and pedestrian adopts a diligent strategy is $2. If an accident occurs, the pedestrian incurs accident costs of $30. If both players adopt a negligent strategy, the probability of an accident is 0.1. If either player adopts a diligent strategy, there is 0.05 chance that an accident will occur. If both players adopt a diligent strategy, the probability that an accident will occur is 0.01. The Nash equilibrium strategy profile for a negligence-with-contributory-negligence tort law regime is:
(Multiple Choice)
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Suppose that in the cost of avoiding an accident if a motorist and pedestrian adopt a diligent strategy is $10. If an accident occurs, the pedestrian incurs accident costs of $100. If both players adopt a negligent strategy, the probability of an accident is 0.40. If either player adopts a diligent strategy, there is 0.35 chance that an accident will occur. If both players adopt a diligent strategy, the probability that an accident will occur is 0.25. What is the Nash equilibrium strategy profile for a negligence-with-contributory- negligence tort law regime?
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Suppose that in the cost of avoiding an accident if a motorist and pedestrian adopt a diligent strategy is $10. If an accident occurs, the pedestrian incurs accident costs of $100. If both players adopt a negligent strategy, the probability of an accident is 0.40. If either player adopts a diligent strategy, there is 0.35 chance that an accident will occur. If both players adopt a diligent strategy, the probability that an accident will occur is 0.25. What is the Nash equilibrium strategy profile for a no-liability tort law regime?
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-Consider the game depicted in Figure 14.11. If a motorist hits a pedestrian, the pedestrian incurs accident costs of $50. The cost of being diligent for both players is $5. If both players are diligent, the probability that an accident will occur is 5 percent. The payoffs from alternative strategy profiles suggest that the prevailing tort law regime is:

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-Consider the game depicted in Figure 14.2, which summarizes the payoffs to a tortfeasor and an injured person resulting from an act of negligence. This situation most likely represents which of the following tort law regimes?

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Suppose that in the cost of avoiding an accident if a motorist and pedestrian adopt a diligent strategy is $10. If an accident occurs, the pedestrian incurs accident costs of $100. If both players adopt a negligent strategy, the probability of an accident is 0.40. If either player adopts a diligent strategy, there is 0.35 chance that an accident will occur. If both players adopt a diligent strategy, the probability that an accident will occur is 0.25. What is the Nash equilibrium strategy profile for a strict-liability-with-contributory- negligence tort law regime?
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