Its a weird feeling...

I just turned in my final final. The read deal. So unofficially, I am now done with, managerial economics, my MBA, and school. Period. Wow, its pretty hard to explain how that feels.

Hopefully I won't get in trouble for doing this, but here is a question off my final, from one of the topics that I enjoyed most in this class, game theory:

Suppose you are given the following information on a two-firm oligopoly (duopoly).

Firm A will earn $6,000 in profit if it charges a price of $10 and Firm B charges a price of $10, Firm B will earn $6,000 in profit.
Firm A will earn $1,000 in profit if it charges a price of $10 and Firm B charges a price of $7, Firm B will earn $8,000 in profit.
Firm A will earn $8,000 in profit if it charges a price of $7 and Firm B charges a price of $10, Firm B will earn $1,000 in profit.
Firm A will earn $2,000 in profit if it charges a price of $7 and Firm B charges a price of $7, Firm B will earn $2,000 in profit.

A. (10 points) Construct a game tree showing the decisions facing firms A and B with firm A in the lead position.


B. (5 points) Given the game tree above, what is Firm A’s dominant strategy?


C. (5 points) Given the game tree above, what is Firm B’s dominant strategy?


D. (5 points) What is the Nash equilibrium?

There was even a little calculus that I had to do for this class. That was challenging for me at first, since I hadn't done any math since I was a junior in high school. And I've never taken calculus.

Anyways, there it is! I'll let you know when it becomes official, and I get my diploma and everything.

New Floor

Thanks to a very nice Christmas bonus from mediaRAIN, We bought some laminate flooring for our living room. I've been excited about this for a while. In fact, ever since an unpleasant discovery just after we bought the house. We removed a sofa left by the old owners, strategically positions to cover a huge "stiff spot" in the carpet. (No wonder that sofa was positioned in an awkward place...)

We had lots of help, and we basically finished in one day. I love the way it looks, and hopefully it raises the value of our home a little as well...

The next big home investment: Granite counter tops. Come on uncle Sam, give us a beefy tax return!

Thanks everyone for your help!

Before:


During:



After:



If you are interested in doing pergo or similar laminate flooring, I recommend it. It was very easy to put in, and only cost $2 a sq foot. All in all the project was around $900. One big bonus is that you can slide really well with just socks on. When you come over you can try it.