GPP written assignment 5

Need help with my Business question – I’m studying for my class.

Answer the following questions. 250 words each question


Please number the answer

1.What incentive function do co-payments and deductibles play for insurance coverage?

2.How might high overtime pay discourage productivity?

3.In an iterated prisoner’s dilemma game, one may decide to punish an opponent who has defected by responding with defection for a certain number of rounds, then reverting to cooperation. This strategy would result in the punished player losing, say, $x each round (starting next round) for n rounds. Show that the present value of the money lost is (δ – δn + 1) x/(1 – δ).[Hint: Call the present value of these loses T and parallel the work above.] (5.2)

GPP written assignment 5

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