PROBLEM SET #7 1. A dominant strategy is a strategy that A. results
... A. results in the highest payoff to a player regardless of the opponent's action. B. guarantees the highest payoff given the worst possible scenario. C. describes a set of strategies in which no player can improve her payoff by unilaterally changing her own strategy, given the other players' strateg ...
... A. results in the highest payoff to a player regardless of the opponent's action. B. guarantees the highest payoff given the worst possible scenario. C. describes a set of strategies in which no player can improve her payoff by unilaterally changing her own strategy, given the other players' strateg ...
Simultaneous Move Games Lecture Four
... • If all of the comparisons are strict, then we say that si strictly dominates the other strategies or is strictly dominant. • Otherwise, it is weakly dominant. • If player i has strategies si, sk with the feature that Ui(si, zj) $ Ui(sk, zj) for every zj then we say that sk is dominated by sj . • N ...
... • If all of the comparisons are strict, then we say that si strictly dominates the other strategies or is strictly dominant. • Otherwise, it is weakly dominant. • If player i has strategies si, sk with the feature that Ui(si, zj) $ Ui(sk, zj) for every zj then we say that sk is dominated by sj . • N ...
Solution Concepts
... Nash equilibrium might arrive through introspection. A second justification is that Nash equilibria are self-enforcing. If players agree on a strategy profile before independently choosing their actions, then no player will have reason to deviate if the agreed profile is a Nash equilibrium. On the o ...
... Nash equilibrium might arrive through introspection. A second justification is that Nash equilibria are self-enforcing. If players agree on a strategy profile before independently choosing their actions, then no player will have reason to deviate if the agreed profile is a Nash equilibrium. On the o ...
NauVTslides - Duke University`s Fuqua School of Business
... from the strategy recommended to you by a possibly-correlated randomization device • The Nash equilibria are points where the polytope touches the “saddle” of independent distribuitions ...
... from the strategy recommended to you by a possibly-correlated randomization device • The Nash equilibria are points where the polytope touches the “saddle” of independent distribuitions ...
Lecture 5: Mixed strategies and expected payoffs
... The expected value can be written using the scalar product: if x and y are two vectors in RN then the scalar product is given by hx, yi = ...
... The expected value can be written using the scalar product: if x and y are two vectors in RN then the scalar product is given by hx, yi = ...
ProbSet7.pdf
... two quantities to find the quantities in the Nash-Cournot equilibrium of this game. Hence find the prices and the profits in this equilibrium. (c) (5 points) Solve the inverse demand functions to get the (direct) demand functions, expressing each of Q1 and Q2 in terms of both prices P1 and P2 . (d) (8 ...
... two quantities to find the quantities in the Nash-Cournot equilibrium of this game. Hence find the prices and the profits in this equilibrium. (c) (5 points) Solve the inverse demand functions to get the (direct) demand functions, expressing each of Q1 and Q2 in terms of both prices P1 and P2 . (d) (8 ...
Lecture 31: Duopoly
... The Cournot Model • Each firm chooses independently its output. • The price is determined by the demand curve. • What outputs do the firms choose? ...
... The Cournot Model • Each firm chooses independently its output. • The price is determined by the demand curve. • What outputs do the firms choose? ...
Oligopoly
... An Economic Application of Game Theory: the Kinked-Demand Curve • Above the kink, demand is relatively elastic because all other firm’s prices remain unchanged. Below the kink, demand is relatively inelastic because all other firms will introduce a similar price cut, eventually leading to a price w ...
... An Economic Application of Game Theory: the Kinked-Demand Curve • Above the kink, demand is relatively elastic because all other firm’s prices remain unchanged. Below the kink, demand is relatively inelastic because all other firms will introduce a similar price cut, eventually leading to a price w ...
Economics 203: Section 5
... game of incomplete information as one of imperfect information, in which nature selects some “types” for the players, and players observe their own types but not the types of others. We already have the tools to analyze such games of imperfect information. Formally, we have a Bayesian game (S, g, Θ, ...
... game of incomplete information as one of imperfect information, in which nature selects some “types” for the players, and players observe their own types but not the types of others. We already have the tools to analyze such games of imperfect information. Formally, we have a Bayesian game (S, g, Θ, ...
