ECON1030 Spring 2015 Pset 6

# ECON1030 Spring 2015 Pset 6

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Problem Set 6

Due: April 2, 2015 Economics 1030

Solutions will be posted on Monday (before the problem set is due), so you

Problem 1 (Buying a rm): Consider a generalized version of the buying

a rm problem:

The value,   of company to Tomasz is distributed uniformly over the

range [   ]

Tomasz knows its true value.

You dont know true value but company is worth  times more to you

than it is to Tomasz. (You should assume that   1)

You make a take-it-or-leave-it oer to Tomasz, which Tomasz accepts

if and only if your oer is greater than or equal to his valuation.

You are risk neutral.


a. Assume that [ ...

ECON1030 Spring
Ash

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Excerpt from file: Problem Set 6 Due: April 2, 2015 Economics 1030 Solutions will be posted on Monday (before the problem set is due), so you can check your answers if youd like. Problem 1 (Buying a firm): Consider a generalized version of the buying a firm problem: The value, of company to Tomasz is distributed

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