Econ经济代写 Problem 1
(a) This is a classic matching problem. The easiest way to find the Nash equilibrium is to first eliminate from each row the dominated strategies for Harrison. Harrison has the second payoff in each pair. Looking at the first row, if Tyler chooses small (S), Harrison should also choose small. Thus the point (S,L) in the upper right-hand corner can be eliminated.
Financial代写 Considerthe daily returns of Caterpillar (CAT) stock from January 2, 2010 to Nov 16, Download the Caterpillar data using the ’quanmod’ package in R. Using daily closing price to construct simple returns so as to form log returns. Multiple the log returns by 100 to obtain the percentage returns. Let rt be the percentage log returns.