Compute and describe the nash equilibria

Reference no: EM131251541

Nash's demand game6:-

Compute and describe the Nash equilibria of the following static bargaining game. Simultaneously and independently, players 1 and 2 make demands m1 and m2. These numbers are required to be between 0 and 1. If m1 + m2 ... 1 (compatible demands, given that the surplus to be divided equals 1), then player 1 obtains the payoff m1 and player 2 obtains m2. In contrast, if m1 + m2 > 1 (incompatible demands), then both players get 0.

In addition to describing the set of equilibria, offer an interpretation in terms of bargaining weights as in the standard bargaining solution.

Reference no: EM131251541

Questions Cloud

Write the payoff vectors corresponding to the equilibria : Write the payoff vectors corresponding to the equilibria of these games to reveal a pattern. - Can you tell to what the payoff vector of the T-stage game converges as T becomes large?

Analyze the lead response for fishbone apatite : The pH was then adjusted to 5 or 7 using nitric acid. Sufficient concentration of lead nitrate solution was added to each flask to result in a final volume of 200 mL and a lead concentration of 0.483 or 2.41 mM, respectively. The experiment was a ..

Advantages manager experience in using foreign subsidiaries : Prepare a 750-word summary of the advantages and disadvantages a manager might experience in using foreign subsidiaries to sell their product.

Which cultural ethnic religious group are you studying : Which cultural/ethnic/religious group are you studying? Why do you think it is important for us to learn about this group in this class? Provide a brief background about the group as it relates to your paper.

Compute and describe the nash equilibria : Compute and describe the Nash equilibria of the following static bargaining game. - Simultaneously and independently, players 1 and 2 make demands m1 and m2.

How many degrees of freedom for error will be available : Suppose that the significant factors are A, C, AB, and AC. What other effects need to be included to obtain a hierarchical model?

How does the decision in this case impact the validity : How does the decision in this case impact the validity of the Board and other provisions of the Sarbanes-Oxley Act?

Cumulative distribution function : For a continuous random variable, is the probability density function, f(x), or the cumulative distribution function, F(x), more useful in calculating probabilities? Explain why you reach this conclusion.

Find and report the subgame perfect equilibrium : Find and report the subgame perfect equilibrium. Note how equilibrium behavior depends on a. - What is the equilibrium monetary split as a becomes large? Explain why this is the case.

User Account

All Pages