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0answers
62 views

Help to solve this problem, the result doesn't seem right :/ silly mistake somewhere probably

Suppose that Coke and Pepsi are the only firms producing cola. Their products are not identical, but are very close substitutes. Let $P_c$ denote the price of Coke and $P_p$ the price of Pepsi. Demand ...
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1answer
39 views

So I have the following question, dont have much info on class notes and not sure how to tackle it, any suggestions, any help?

A seller has a single item for sale (which she values at zero). There are two potential buyers. The seller decides to use the following auction format to sell the object: each bidder submits a sealed ...
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vote
2answers
65 views

Third and average price auction

Third price auction: the winner is the highst bidder but this time instead of paying the second highst bid, he would pay the third highst bid. -assume there are at least 3 bidders. - Average price ...
1
vote
2answers
98 views

Which Nash equilibrium is this?

There are two stores, A and B with the following demand functions, The open circles indicate an open interval, the filled circle is a closed interval. Both firms wants to maximize profit, and ...
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1answer
119 views

Nash Equilibrium in Cournot Duopoly

If you have a demand function Q1= 20 + 3/4 p2 - p1 and Q2= 20 + 3/4 p1 - p2, how does one go about solving for the Nash equilibrium if you know there are no costs? I've tried solving for Q and then ...
5
votes
1answer
175 views

When do $\epsilon$-Nash equilibrium strategies converge to Nash equilibrium strategies?

Suppose I have a game on $n$ players and a sequence of strategy profiles $(s_1^{(1)},\dots,s_n^{(1)}), (s_1^{(2)},\dots,s_n^{(2)}), (s_1^{(3)},\dots,s_n^{(3)}), \dots$. Each ...
2
votes
2answers
2k views

Cournot-Nash Equilibrium in Duopoly

This is a homework question, but resources online are exceedingly complicated, so I was hoping there was a fast, efficient way of solving the following question: There are 2 firms in an industry, ...
4
votes
1answer
713 views

Finding mixed Nash equilibria in continuous games

I'm taking my first (graduate-level) game theory class. I understand how to find Nash equilibria in simple games, such as those given in finite tables, and can see (usually) how to find the mixed ...
2
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1answer
144 views

vickery auction question(second-price auction)

The question is as follow, Alice and Bob would both like to own the same manuscript. The manuscript is worth 5 million to Alice and worth 3 million to Bob. The present owner of the manuscript ...
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1answer
227 views

subgame perfect nash equilibrium for war of attrition

the question is as follow: suppose that two players are playing war of attrition, that means both of them could choose either to fight or quit, if either one of them quit, the game ends, and if ...
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2answers
3k views

cournot competition with N-firms

The question is as follow: Here is how we can think of N-firm Cournot competition. Assume all the firms have the same marginal cost C > 0. Firm 1 chooses Q1, Firm 2 chooses Q2, and so on. The market ...
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1answer
93 views

question on T period bargaining(alternating offers).

the following question is a kind of Rubinstein bargaining model: 2 players, A and B, have 100dollars to divide between them. They agree to spend T days negotiating over this division. The first day, ...
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1answer
211 views

Question on mixed nash equilibrium!

The question is as follows: Think of the Golden Ball game. Now player 1 is money-minded and jealous, and player 2 is very good-hearted, so the payoff matrix is follows: ...
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2answers
621 views

Subgame Perfect Nash Equilibrium

My homework question is summarized below: There are 7 players (say P1,P2,...,P7) trying to split 100 dollars. The game starts with P1 proposing an allocation of the 100 dollars to each ...
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1answer
701 views

Finding Nash Equilibria with Calculus

The problem is summarized as: There are two players. Player 1's strategy is h. Player 2's strategy is w. Both of their ...
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1answer
846 views

Unable to find Nash equilibria in mixed strategies

Here is the strategic form game: Player 2 Left Middle Right Top 2,2 0,0 1,3 Player 1 Middle 1,3 3,0 1,0 ...
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1answer
168 views

Nash equilibria of mixed strategies

I am given the following game to find nash equilibria in pure and mixed strategies: $\begin{pmatrix}& & Litte John &\\ & & c & w \\Big John & c & (5,3) & (4,4) \\ ...
4
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2answers
2k views

Cournot Nash Equilibrium Between Two Firms

Suppose we have two firms with specialized, but similar products. Suppose market demand for the two products is: $$p_1(q_1,q_2)=a-bq_1-dq_2$$ $$p_2(q_1,q_2)=a-bq_2-dq_1$$ where $d \in (-b,b)$. Suppose ...