• (I am trying to organize my thinking in this post.)

    Three things to bear in mind (first two are facts and the third is an assumption):

    1. It is no longer possible for the Prime Minister to unilaterally call an election in the middle of a term without two-thirds of the House of Commons voting for it.
    2. The Leave vote is split between the Conservatives, the Brexit Party and Labour. The Remain vote in split between the Conservatives, the Liberal Democrats, the Greens, SNP and Labour.
    3. Boris Johnson is office-motivated not policy-motivated, i.e. he cares about being elected with a working majority and not about Brexit vs no-Brexit per se. He famously wrote two speeches, one pro-Brexit and one anti-Brexit and thought the former read better and went with it.

    Johnson is giving every impression of hurtling towards “no deal”. He has shortened the term of Parliament, he is not negotiating with the EU and has come up with no new alternatives to no deal.

    One way to understand this strategy is as the classic Schelling commitment tactic in a game of Chicken versus the EU. No deal would also hurt the EU so if they believe the UK’s threat to leave with no deal is credible, they will concede.

    What if the EU does not concede? No deal would be terrible for Johnson’s re-election prospects. There would be an economic crisis, Scotland would start pushing for independence and there could be a similar push in Northern Ireland or even a return to violence.

    So Johnson wants to be over-ruled by Parliament. To maximize the incentive of the Lib Dems, Labour and the Remain-backing Conservatives to organize, he needs to give them as little time as possible and give a credible sense he is going for no deal. Once, they overrule him, he can ask for an early election saying the country needs to vote to give Parliament direction. By having gone for no deal, he becomes the Leave candidate, unifies that portion of the electorate behind him while the Remain vote is still split. What happens after that? My guess would be that the UK ends up back in limbo forever stuck in negotiating stance but Johnson is fine with that as long as he gets to be PM.

    This is the optimal path from Johnson’s perspective. It seems iteratively dominant to go for no deal. Either the EU blinks and no deal is better than the compromise-Theresa-May deal, or it does not, but no deal is replaced by kicking can down the road which is also better than the compromise deal.

    But this relies on some backward induction argument where voters and competing political parties play along with Johnson’s forecast.

    The most likely scenario is that Labour and the Lib Dems see through this strategy (though voters do not).

    Their most dramatic countermove would be to accept the no deal status quo and leave it up to Johnson to deal with the EU till October 31. He would then cave and lose his brand as the Leave candidate. This would maximize electoral prospects of opposition parties. Some combination of morality, policy motivation, incentive to differentiate from the Conservatives and fear of actual no deal consequences will mean this option is not chosen.

    A second move would be to pass no deal legislation and then refuse calls for an early election. This would be both responsible and then leave time for country to see Johnson’s incompetence for a while before an election occurs. But impatience on part of Corbyn for an election which he thinks he can win will undermine the patience required to implement this strategy.

    So we are left with the third option which is to prevent no deal and then have an election in November or December once EU agrees to delay implementation of exit. And this is pretty much what Johnson wanted in the first place so his strategy is prescient after all.

     

    There is a sender and two receivers, L and R. The sender has information, the state of the world, and can also make a decision. There is a socially optimal decision, the ethical decision, which depends on the true state of the world. The sender’s preferences depend on the gap between her decision and the ethical decision and on her “reputation” – more on reputation below.

    If the sender only cared about making the ethical decision, her problem is simple – she implements the socially optimal policy for the privately observed state. But she also cares how much support her decision gets from the two receivers.The sender might care about her support because it affects the long run viability of the institution she belongs to. Or she might just want to be seen as being bipartisan. So the sender’s reputational concerns may arise for ethical reasons.

    The receivers do not know the sender’s preferences – is the sender ethical or biased towards one receiver or the other? A receiver is more likely to support the sender the closer is the sender’s decision is to his own policy preference. The receivers’ preferences have a common value component. They might potentially update their preferences based on the information content of the sender’s decision.

    Suppose the sender faces a decision where where the ethical decision favors 超级微皮恩安卓破解版If she makes that decision, she loses support from and that is bad for her reputation. So, she biases her decision rightward to maintain support. Perhaps she makes the same rightish decision for a set of information states from left to right in a pooling equilibrium. She loses support from the receiver but gets more support from the receiver. For ethical reasons, she makes  a decision which is not ethical from the one period perspective.

    Hence, the press presents “both sides” even when it knows one side is right. The press has a super high standard of proof for calling someone out as a liar. Obama gave McConnell veto power over announcing Russian interference in the election. He could have gone ahead and announced the interference himself at the cost of being non-bipartisan but he did not. Comey broke FBI and DoJ policy by commenting when himself dismissing the case against Hillary Clinton. But he went with policy by not discussing the investigation of Russian interference and communication with members of the Trump campaign.

    So, this framework helps to unify the strategic logic behind the way different institutions and decision-makers operate(d). But it also reveals a flaw in their decisions. This comes from the common value component of the receivers’ preferences. Receivers update on what the right decision is based on what they learn in equilibrium from the sender’s action. Some may switch their preference from left to right or vice-versa based on what they learn.  In fact, majority opinion may change. If there is some outcome that depends on majority opinion like an election, this switch can make dramatic consequences. If the cost of making an error is large,  the sender should condition on this event when they determine their message. Hence, if the reputational loss from changing majority opinion is large enough, the one period ethical decision and the long run ethical decision will be the same.

    So, in this interpretation, the main Comey-NYT-Obama mistake was not to condition on the event they were pivotal but instead to focus on what was probable given the polls.

    (HT: This is speculation based on Stephen Morris’s paper on Political Correctness and Ely-Valimaki on Bad Reputation. Here I am positing multiple principals rather than just one principal and there are is some common value component to principals’ preferences.)

     

     

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    The reason he was able to score from second is that there were two outs and he was free to run without worrying about potentially tagging if the ball was caught. So this raises an interesting question:  was this a situation in which the Cubs were better off with two outs (as opposed to one or zero)?

    Hint:  neither answer is cut and dry correct but I do claim there is a right answer.

    You are in a negotiation and you are offered X. You really want both X and Y but you have just been given the option to take X now and then continue negotiating for Y.

    In this story you are the House of Representatives, X is repeal of the mandate and Y is rollback of Medicaid. You have been offered X in the form of the “skinny repeal”

    Will you take X? That is, will the House just pass the skinny bill as Lindsey Graham and John McCain worry they might?

    Well, its quite likely they will not. But this shouldn’t make the Senators any less worried. Because the House always has the *option* of passing the skinny bill, whatever they do finally agree to in the conference committee will have to be at least as good for the House majority as what they could take immediately.

    In other words X+Y, which by the way if you do the math equals BRCA which Senate Republicans already rejected.

    A one player extensive-form game with perfect information.  The player’s name is Zeno. The game has an infinite horizon.  For every non-negative integer N there is a node at which Zeno chooses either to Continue or Quit.  If he Quits at node N his payoff is -N/(N+1). If he continues he moves on to node N+1.

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    Here is the story:  Zeno stands at the starting line of a Marathon.  After running the distance he decides whether to quit, etc.  His goal is to finish the Marathon and run into the arms of his proud and adoring fans.  If he doesn’t get to the finish line (the node at infinity) then all he has done is make himself tired with no compensating adoration.  The farther he runs before quitting the more tired he is.

    The game has a unique subgame perfect equilibrium:  Zeno completes the Marathon.  But it has another strategy which is unimprovable by a one-stage deviation:  Zeno quits at every opportunity.

    This latter strategy has a nice behavioral interpretation.  Zeno lacks confidence in his determination to complete the Marathon.  In particular he wants to complete it but he expects that if he runs another half of the distance he will wind up quitting once he gets there so why bother.  And indeed the reason he knows he will quit after running half the distance is that he knows that when he gets there he will know that after running another half the distance he will still quit so why bother.

    This is a great example for teaching the One Stage Deviation Principle, which asserts that strategies that are unimprovable are also SPE.  The OSDP requires the game to be continuous at infinity.  The Marathon game is not continuous at infinity.

    To make it continuous at infinity, assume that Zeno’s fans will be almost as proud of him if he runs 26.1999 miles as they would be if he ran the remaining one-millionth of a mile.  If so, then Zeno’s payoff from nearly completing the Marathon is positive and the Quitting strategy becomes improvable.

    On Saturday The New York Times published the story that Donald Trump Jr together with Paul Manafort and Jared Kushner met in Trump Tower with a Russian Lawyer.  That was basically the entire content of the story in terms of new information being reported.  The rest of the story was recap of allegations about collusion together with some hint-hint dot connecting.

    Junior responded by acknowledging the meeting and saying that it was about Russian adoptions.

    The Times followed up on Sunday by reporting that this was in fact a lie, that Junior was promised information about Hillary Clinton that would be valuable for his campaign.

    Junior acknowledged this, but minimized the significance of the meeting through a number of statements.

    Finally the Times was set to publish accounts of an email thread that apparently showed that Trump was told in advance that this was an effort by the Russian government to provide information that would help his father get elected.

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    Someone, either the Times’ source, or the Times journalists themselves had all of that information at the very beginning.  And rather than do the normal journalistic thing of reporting what they knew they released it in little bits.

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    Their dilemma was that first and foremost they don’t want to admit to have colluded with the Russian government.  But, if that was going to be proven anyway they would rather not first lie about it and then have to admit it.

    They tried lying.  The Times released another little piece which did two things.  First it proved they lied, and second it proved that they have more information than they had in their original story.

    Now Junior and Co. had to guess just how much information.  They guessed wrong.  Indeed the Times had all of the information and in the end Junior was forced to admit what he could have admitted at the beginning and along the way he was caught in two lies.  Indeed in the end he pre-empted the Times revelation by revealing everything himself.

    This is a very clever tactic by journalists who are technically doing the journalistically-ethical thing of publishing only the truth,  but being strategic about it by publishing in little pieces to maximize the damage, probably because the Trump administration has made them the enemy.

    Note how truly powerful this tactic is once it has been deployed.  The next time the Times has some 超级微皮恩安卓破解版 of the information that would prove guilt they will again release a little bit of it.  Trump will have to guess again how much they are holding back.  Trump will have to trade off the probability of being caught in another lie (if The Times truly has all the dirt) versus credible denial (if they don’t).  If used optimally, this bluffing tactic can get the subject to pre-emptively confess (i.e. to fold to extent the poker analogy) even when the damaging evidence isn’t there.

    (One could write a simple dynamic Bayesian persuasion model to calculate the Times’ optimal probability of bluffing in order to maximize the probability that the subject’s best-response is to pre-emptively confess.)

     

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    I will start.  超级微皮恩安卓破解版 was based on the value of advertising to movie-goers who must arrive early to get preferred seats and then are a captive audience.  This has become significantly less valuable now that said movie-goers can bring their own screens and be captive to some other advertiser.

    Indeed today at the movies we arrived on time to our assigned seat, there were no ads and just a few previews.  (Spoiler alert:  the movie with Stringer Bell and the Titanic girl is going to suck, Bladerunner is going to be great and Wonder Woman was awesome for the first and last 10 minutes but apart from that was basically Splash meets Hot Lead and Cold Feet.)

     

    1. One reason time seems to go faster when you are older. “Has it already been a year?” You have so many more things going on and only a few of them can reside in working memory. When some milestone brings a buried one back to the surface it feels like time has passed more quickly than if it were on your mind the whole time.
    2. A 50 meter tall swimmer would win every race.  Generally taller swimmers have less ground to cover and so the distance is shorter for them.  Is there any kind of race other than swimming like that?
    3. If you have your brain cut into two parts so that one side is unaware of what the other is doing can you tickle yourself?

    The anticlimax that is/will be the Comey testimony proves something I have always thought about skeletons in the closet. They should be released early when not everyone is paying attention.

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    So despite the several outrageous things in the Comey statement, they are all old news and that feeling of anti-climax is a symptom of the above logic. If Comey had not previewed his testimony in the preceding weeks but instead dropped it as one brand new bombshell on TV in front of a Super Bowl audience (paging Michael Chwe) the same skeletons would cause significantly more outrage.

    An interesting corollary is that leaks are actually Trump’s ally. Leaking the scandal little by little through varied and segregated media channels is a way of getting the skeletons out with minimal impact well in advance of any chance of outrage.

    (There’s a new paper by Gratton, Holden and Kolotilin that also looks at bombshells but I think the argument is a little different.)

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    2. That means that before reaching that point, Democrats will do their very best to get him to comment while they still have a chance.  Knowing this of course makes the VP want to hide even sooner, etc.  The unraveling may have already reached back to the present moment.
    3. At some point the VP himself becomes a threat to the President because Republicans in Congress will try to find the smoothest path to a fresh Presidency with the possibility of delivering on their agenda intact.  This will involve coordination with the VP.
    4. That means the President himself will try to get the VP to publicly support him in order to ensure that the VP is tarred with the same brush, removing the above branch of the tree and maintaining the threat of a messy impeachment proceeding that congressional Republicans will want to avoid.  Of course the first sign that the President needs the VP is the first signal to the VP that his best respond is to run far away, accelerating the unraveling further.
    5. This implies another leading indicator of impending doom.  There will come a time when its the GOP that wants to hasten the proceedings and the Democrats will try to slow it down.
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    7. And of course the GOP is by no means out of the water once Trump is gone.  He will be tweeting.  He will have his “tapes”.  He could even run again.

    This paper by Finkelstein, Hendren, and Shepard finds that the uninsured have such a low willingness to pay for health insurance that they wouldn’t even cover the costs they impose on insurers:

    But for our entire in-sample distribution – which spans the 6th to the 70th percentile of the WTP distribution – the WTP of marginal enrollees still lies far below their own expected costs imposed on insurers for either the H or L plans. For example, a median WTP individual imposes a cost of $340 on the insurer for the H plan, but is willing to pay only about $100 for the H plan. This suggests that textbook subsidies offsetting adverse selection would be insufficient for generating take-up for at least 70% of this low-income population. Coverage is low not simply because of adverse selection but because people are not willing to pay their own cost they impose on the insurer.

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    Except when you look at the likely reason.

    Individuals choosing to forego health insurance exercise the ability to utilize uncompensated care; this externality from insurance choice raises a potential Samaritan’s dilemma rationale (Buchanan, 1975) for providing health insurance subsidies by using government taxes to internalize the externality imposed on the providers of uncompensated care when individuals choose to remain uninsured.

    They are going to emergency rooms, receiving charity, etc.  The low revealed willingness to pay comes from the fact that that formal health insurance would crowd out the informal health insurance they are receiving for “free”.  But of course the cost is borne by somebody and should be added to the welfare calculation.

    Perhaps we should stop thinking of health insurance as solving a traditional market failure but instead think of it in the same terms as flood insurance.  Flood insurance is federally mandated for residences in flood plains.  The logic is very simple.  When there is a flood, those affected will receive assistance whether they have insurance or not.  Therefore the only way to get them to internalize any of these costs is to require them to pay in advance, in the form of flood insurance.

    When politicians argue against health insurance mandates because they take freedoms away ask them to argue against mandatory flood insurance on the same terms.

    Beanie bob:  MR

    Yesterday just before the start of a seminar I went to the thermostat to try to warm up the room.  The speaker saw me fiddling with it and nodded with approval.  I said nothing, turned up the heat and returned to my seat.

    The thing is, she couldn’t see whether I was raising the temperature or lowering it.  She just assumed that I would be moving the temperature in the same direction as her preference.  And of course with good reason.  We both want a comfortable room.  We each get private signals about whether the room is currently too cold or too warm.  Our private signals are correlated. If her private signal suggests the room is too warm then she knows that more likely than not my private signal says the same thing, and since I am acting on my private signal and nothing more I am most likely adjusting the thermostat exactly how she wants it.

    I know all of this and therefore I strictly prefer to say nothing about what I am doing.  By saying nothing I allow her to continue to believe that I am doing what she wants me to do even though I don’t know for sure what it is she wants.  Her signal of course could be different than mine.  If instead I tell her I am raising the temperature then in the best case I am just confirming what she already believed and nothing is gained.  But there is the risk that I inform her that actually I am doing the opposite of what she wants and then we have a conflict.

    Her seminar was awesome.

    NYT on whether to filibuster Gorsuch now or wait:

    The substantive stakes now are relatively low: Judge Gorsuch appears to be very conservative, but so was Justice Scalia. Confirming Judge Gorsuch would merely preserve the ideological status quo on the closely divided Supreme Court. Should the confirmation move ahead, all 52 Republican senators will probably stick together, bolstered by a few Democrats from conservative-leaning states. Those are enough votes to easily clear the way for confirming Judge Gorsuch — and all future nominees — by a simple majority.

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    The framing for the filibuster fight would be different at that point. It would focus on whether the nominee would provide a fifth vote to overrule the Roe v. Wade abortion rights precedent and create a new conservative majority on other highly charged topics, like guns, affirmative action and the rights of same-sex couples.

    Under that second possibility, it may not be inevitable that the filibuster rule falls. Red-state Democrats would be less likely to break ranks, and institutionalist or moderate Republican senators, like Susan Collins of Maine and Lisa Murkowski of Alaska, might be more reluctant to vote to change the chamber’s longstanding rules.

    If red state Democrats and Collins and Murkowski can do backward induction, filibustering now or later is equivalent.

    Also, if Republicans use the “nuclear option”, this reveals their type to Kennedy who may then defer retirement so he is not replaced by a Trump appointee.

     

    A few weeks ago, I went to a meeting.

    There was a part of the meeting where some open-ended information was disseminated and very general comments were sought. Now, one possibility when you make a comment is that it leads to interesting responses and a “whole if bigger than the sum of the parts” dynamic develops. Let us call this the brainstorming case. (This is the scenario that is meant to occur in research seminars.)

    Much more likely is the “every action has an equal reaction” case where you talk, others respond but really the discussion goes nowhere and you wish no-one had talked in the first place. Let us called this the BS case. Casual empiricism suggests that the BS case is much more common than the brainstorming case.

    This fact implies that comments should be taxed to internalize the negative externality but with taxation impossible we have to rely on morality to create incentives. Any moral individual should take into account the horrific effect of their casual comments. Even a rational decision-maker should take the negative feedback loop into account – in this sense, the BS case helps rational individuals take the horrific effects of talking at meetings into account. However, even this does not account for the acute suffering of the innocent by-listener so the moral individual should ratchet up the threshold for talking yet further.

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    There was 20 seconds left, Vanderbilt had just scored a layup to go ahead by 1 and Northwestern’s Bryant Mcintosh was racing to midcourt to set-up a final chance to regain the lead and win the game.  Vanderbilt’s Matthew Fisher-Davis intentionally fouled him, sending McIntosh to the line and the 云顶之弈手游正式版安卓v10.12最新版下载 支持美服/澳服/欧 ...:1 天前 · 爱威奶AVnight 安卓v1.9 avbobo最新破解(老司机神器)无限影视 黑洞加速器最新版破解 789加速器网络优化加速已破解永久时长 我的性感表姐1.6 汉化 安卓Fulao2最强老司机软件 老王微皮恩科学上网最新破解 安卓大厂精v1.04免费 无限身伇证-防沉迷神器一键 into a state of bewilderment.  Yes, we understand intentionally fouling when you are down 1 with 20 seconds to go, but when you are ahead by 1?

    But it was a brilliant move and it failed only because the worst-case scenario (for Vanderbilt) realized:  McIntosh made two clutch free throws and Vanderbilt did not score on the ensuing possession.

    (Before we get into the analysis, a simple way to understand the logic of the play is to notice that intentionally fouling late in the game very often is the right strategic move when you are down by a few points and there is no reason that should change precipitously when the point differential goes from slightly negative to slightly positive.The tactic is based on a  tradeoff between giving away (random) points and getting (for sure) possession.  The factors in that tradeoff are continuous as a function of the current scoring margin.)

    Let 超级微皮恩安卓破解版 be the probability that a team scores (at least two points) on a possession.  Let 超级微皮恩安卓破解版 be the probability that Bryant McIntosh makes a free throw.  Roughly, the probability that Vanderbilt wins if they do not foul is 1-p because Northwestern is going to play for the final shot and win if they make a field goal.

    What is the probability that Vanderbilt wins when Fisher-Davis fouls? There are multiple, mutually-exclusive ways they could win.  First, McIntosh might miss both free-throws.  This happens with probability (1-q)^2.  The other simple case is McIntosh makes both free-throws, a probability 超级微皮恩安卓破解版 event, in which case Vanderbilt wins by scoring on the following possession, which they do with probability p. Thus, the total probability Vanderbilt wins in this second case is 超级微皮恩安卓破解版.

    The third possibility is McIntosh makes one free-throw.  This has probability 超级微皮恩安卓破解版. (I am pretty sure McIntosh was shooting two, i.e. Northwestern was in the double bonus, but if it was a one-and-