Uncertainty over Costs Bargaining over War faq

instructor Instructor: William Spaniel instructor-icon
duration Duration: 1.00 duration-icon

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Course Feature Course Overview Course Provider Discussion and Reviews
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Course Feature

costCost:

Free

providerProvider:

Youtube

certificateCertificate:

Paid Certification

languageLanguage:

English

start dateStart Date:

On-Demand

Course Overview

❗The content presented here is sourced directly from Youtube platform. For comprehensive course details, including enrollment information, simply click on the 'Go to class' link on our website.

Updated in [July 25th, 2023]

This course introduces students to the concept of uncertainty over costs bargaining over war. It begins by discussing the model's setup and the accept/reject decisions of both the high cost type and the low cost type. Visualizations of the accept/reject decision are then presented. The proposer's dilemma is then discussed, followed by an exploration of why very small and very large demands are not optimal. Unnecessary concession to high cost types is also discussed. The only two possible optimal demands are then identified, along with the optimal demand. Visualizations of the utility function and the risk-return tradeoff are also presented.

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