In this problem set you will summarize the paper “Imperfect Public Monitoring with Costly Punishment: An Experimental Study” (Ambrus and Greiner, AER 2012) and recreate some of its findings.1 Big Picture[Q1] What is the main question asked in this paper?[your written answer here][Q2] Summarize the experiment design.[your written answer here][Q3] Summarize the main results of the experiment.[your written answer here][Q4] Why are these results valuable? What have we learned? Motivate your discussion with a real-world example. In particular discuss the tradeoffs to transparency in groups and how these tradeoffs might be navigated in a firm, or more broadly, a society.[your written answer here][Q5] If punishment is ineffective under imperfect monitoring, what else can you lean on to ensure people cooperate (at least a little) in a public goods problem?[your written answer here]2 TheoryPayoffs to agent ii areπi=(ei−xi)+α∑i=1nxiπi=(ei−xi)+α∑i=1nxiwhere eiei is the agent’s endowment, xixi is her contribution to the public good, αα is the marginal per capita return, and nn is the group size.[Q6] Explain αα and why in public goods game requires 1n<α<11n<α<1.[your written answer here][Q7] Suppose ei=e=20ei=e=20 (i.e. everyone has 20), α=0.4α=0.4 and n=4n=4. Show that xi=0xi=0 is a symmetric Nash equilibrium, but xi=20xi=20 is the social optimum. (Recall that in a Nash equilibrium ii cannot increase her payoff by changing her contribution.) Hint: you can use code to answer this problem by calcuting payoffs to a representative agent and plotting them. You might the curve() function useful.[your written answer here]3 Replicationpunnoise = read_csv("../data/punnoise_data.csv")3.1 DescriptionUse theme_classic() for all plots.[Q8] Recreate Table 1 and usekable() to make a publication-quality table (in HTML).# your code here3.2 InferenceConsider the linear modely=α+β1x1+β2x2+εy=α+β1x1+β2x2+ε[Q9] Write down the marginal effect of x1x1 (in math).[your written answer here]Now suppose you have a non-linear modely=F(α+β1x1+β2x2+ε)y=F(α+β1x1+β2x2+ε)where F(⋅)F(⋅) is a “link function” that compresses the inputs so that the output y^∈[0,1]y^∈[0,1].[Q10] Write down the marginal effect of x1x1. How does this compare to the marginal effect in the linear model?[your written answer here][Q11] A probit model uses the Normal CDF ΦΦ as the link function, where Φ′=ϕΦ′=ϕ is the Normal PDF. Use glm() to estimate Model 1 in Table 2. Assign the model to the object m1. Cluster the standard errors at the group level.# your code here[Q12] Interpret the coefficients. (For more on the probit model, see the appendix.)[your written answer here]3.2.1 Average marginal effects[Q13] Table 2 reports the average marginal effects (AMEs) of the variables on P(contribute)P(contribute). Calculate the AME to the variable round as follows:Use predict()to create an object predictions that contains the predicted z-scores. (i.e. Xβ^Xβ^. Hint: use the option type="link" in predict().)# your code hereUse dnorm() to calculate the probabilities of the predicted z-scores and store the output in an object called index.# your code hereNow calculate the marginal effects by multiplying the predicted probabilities times the estimated coefficient for round and store the output in dydxround.# your code hereUse mean() to calculate the AME.# your code here[Q14] Verify your calculations with margins(), the plot the AMEs. (Note: these will not be exactly the same as those in the paper, since the paper uses an outdated method in Stata.# your code here# your code here[Q15] Interpret the AMEs.[your written answer here]

Read the above case study and prepare the necessary documents as explained below. You have been called in as a Business Analyst Consultant for Blackrocks. Review the case study and create a SWOT analysis presentation for the Blackrocks leadership team. Your PowerPoint presentation should include the following:Title slide.Overview of presentation/Introduction.SWOT Analysis. Include internal or external factors that relate to: Current business environment.Building of teams.Management's role in strategic planning.The importance of a strong corporate culture.Leadership/Motivation.Communication. Create effective solutions to address multiple weaknesses and/or threats.Create recommendations to capture on multiple opportunities.Conclusion.RUBRIC QUESTION1. Introduction provides an overview of the problem and demonstrated a clear understanding of the current problem and used direct examples from the case study and included additional research.2. Correctly includes SWOT analysis factors for all specified areas clearly using strong supporting research for each section from the case study and additional research.3. Correctly identifies effective solutions based on SWOT analysis factors to address weaknesses or threats using strong supporting research for each section from the case study and additional research.4. Includes recommendations to effectively capitalize on multiple opportunities from SWOT analysis using strong supporting research for each section from the case study and additional research.5. The conclusion summarizes the problem, SWOT analysis, solutions, and recommendations for the presentation using case study examples and additional research to support findings.