# Assignment 1

Topics: Agent-based model, Thomas Schelling, Poverty Pages: 5 (1078 words) Published: March 9, 2013
Question 1
Who developed the racial and income segregation model that we covered in section 2? Answer for Question 1
You entered:

Thomas Schelling| ✔| 1.00| |
Total| | 1.00 / 1.00| |
Question Explanation

Thomas Schelling developed the segregation model from section 2. [See 2.2, "Schelling's Segregation Model"
Question 2
Note: this question is somewhat difficult. You may need to follow along with video lecture 2.3 as you solve. Recall that the index of dissimilarity is a way to categorize, numerically, how segregated a city is. Imagine a city comprised of 20 equal sized blocks, each with 10 residents. 5 blocks contain only rich people; 5 blocks contain only poor people; and ten blocks contain 40% rich people and 60% poor people. What is the index of dissimilarity? Your Answer| | Score| Explanation|

0.555| | | |
0.0555| ✔| 1.00| |
0.605| | | |
0.1111| | | |
Total| | 1.00 / 1.00| |
Question Explanation

Out of the 200 people in this city, the number of rich people equals (5∗10)+(10∗10∗0.4)=90. The number of poor people equals (5∗10)+(10∗10∗0.6)=110. For one block of all rich people, the contribution to the index of dissimilarity equals |1090−0110|=1090 For one block of all poor people, the contribution to the index equals |090−10110|=10110 For each of the other blocks, the contribution equals |490−6110|=199 Now we multiply the above results by the amount of blocks of each type: (5∗1090)+(5∗10110)+(10∗199)=5090+50110+1099=1.111 Finally, we divide by 2: 1.1112=0.555 Therefore, the index of dissimilarity equals 0.555.

[See 2.3, "Measuring Segregation"]
Question 3
Recall the standing ovation model. Suppose that for a particular show, perceptions of show quality are uniformly distributed between 0 and 100. Also suppose that individuals stand if they perceive the quality of the show to exceed 60 out of 100. Approximately what percentage of people will stand initially? Your Answer| | Score| Explanation|

40%| ✔| 1.00| |
0%| | | |
60%| | | |
50%| | | |
Total| | 1.00 / 1.00| |
Question Explanation

The distribution is uniform between 0 and 100, which means that quality perceptions are evenly spread from 0 to 100. This means that half of the individuals will percieve the show quality to be greater than 50, and half will percieve show quality to be less than 50. Following this logic, we know that 40% of people will have quality perceptions above 60. [See 2.5, "The Standing Ovation Model"]

Question 4
In the Standing Ovation model, does increasing the variation in perceptions of quality always increase the number of people initially standing? Your Answer| | Score| Explanation|
Yes| | | |
No| ✔| 1.00| |
Total| | 1.00 / 1.00| |
Question Explanation

No, increasing variation in quality perception does not ALWAYS increase the number of people standing intially. Other variable come into play. Think of it this way: if the median quality perception is above the threshold for people to stand, fewer people will stand initially as variation in quality perception increases. On the other hand, if the median quality perception is BELOW the threshold for people to stand, then more people will stand initially as variation increases, since increasing the variation in quality perception, in this case, leads to more people with quality perceptions above the threshold. [See 2.5, "The Standing Ovation Model"]

Question 5
Imagine that you have never been a cigarette smoker, but suddenly you begin to hang out with a group of people who smoke cigarettes frequently, and after a few weeks, you become a regular smoker as well. This phenomenon is known as: Your Answer| | Score| Explanation|

Sorting| ✘| 0.00| |
Peer Effects| | | |
Total| | 0.00 / 1.00| |
Question Explanation

Peer Effects refers to the phenomenon of acting like and believing like the people we hang out with....