Find the nash equilibrium of game

Assignment Help Mathematics
Reference no: EM131785533

The milk-production of each goes down. Each cow costs the farmer c to buy, and assume that cows are perfectly divisible. The price of milk is p per unit.

Farmers simultaneously (and non-cooperatively) each decide how many cows to purchase; all purchased cows will graze on the common, as there is no other grassy area near the village. Thus N = ∑Ii=1ni where ni is the number of cows bought by farmer i. Each farmer is interested in maximizing her profit i.e. her revenue from selling milk minus the cost of buying cows.

(i) Write this situation as a game in strategic form i.e. identify the set of players, their strategy spaces and payoffs.

(ii) Find the Nash equilibrium of this game i.e. how many cows would each farmer buy, and what would be their profits.

(iii) Suppose instead that the village-headman decided on the total number of cows so as to maximize total surplus of the village i.e. total production minus total cost. How many cows would he choose? How does this compare with what you found in the non-cooperative equilibrium in part (ii)?

Reference no: EM131785533

Questions Cloud

Review the excellent design problem published by downs : Review the excellent design problem published by Downs and Vogel (1993). Transfer this problem statement into a specification in a control design form.
What is the value of the ending inventory on june thirty : A company just starting business made following four inventory purchases. What is the value of the ending inventory on June 30, using the LIFO inventory method.
How many units should be scheduled for production : Assume that the division is using variable costing. How many units should be scheduled for production during the last quarter of the year
Compute the return on common stockholders equity : Suppose selected comparative statement data for the giant booksellerBarnes & Nobleare presented here.
Find the nash equilibrium of game : How many cows would he choose? How does this compare with what you found in the non-cooperative equilibrium in part (ii)
Maintaining a functional organizational culture : Which cultural influence do you feel will constitute the greatest challenge for management as it relates to maintaining a functional organizational culture?
What is the maximum contribution margin the company can earn : What is the maximum contribution margin the company can earn per month? (Round your intermediate calculations to 2 decimal places.)
About intercultural and international business etiquette : Your boss, Marian Yang, wants to know more about intercultural and international business etiquette.
Compute the operating leverage for varner and king : Income from operations 60,000 160,000. Compute the operating leverage for Varner Inc. and King Inc. If required, round to one decimal place

Reviews

Write a Review

Mathematics Questions & Answers

  Proof convergence and limit laws

Suppose that (a_n) ^ infinity, n=m is a convergent sequence of real numbers. Then (a_n) ^ infinity, n=m is also a Cauchy sequence

  Find the absolute maximum and minimum mpg

Find the absolute maximum and minimum mpg

  How many ways can a three-person subcommittee be selected

how many different finishes among the first three places are possible for a ten-horse race? How many ways can a three-person subcommittee be selected from a committee of seven people?

  Find the cost revenue and profit functions

Find the cost, revenue and profit functions. Find the (x, y) coordinates of the breakeven point. Also graph the cost and revenue functions on the same graph and indicate the breakeven point.

  Calculate the flux of the vector field

Calculate the flux of the vector field = 3 + 6 through a square of side 6 lying in the plane x + y + z = 10 oriented away from the origin.

  Theory the mean of the sampling distribution of means

Theory the mean of the sampling distribution of means

  Probabilities for spin the wheel

You're at a school fair where one of the games is "Spin the Wheel". Players spin a giant wheel with numbers 1-40. Look at each of the criteria and express the answers as a decimal, fraction and a percentage.

  How many nickels does barb have

tom and barb hace only nickels and dimes.barb has 75 cents and tom has 90 cents. both have the same number of coins and tom has the same number of dimes as barb has nickels. how many nickels does barb have?

  How much money is invested in bonds

susan purchased municipal bonds which yield 8% annually and certificates of deposit which yield 9% annually. If Susan's initial investments amount to $10,000 and the annual income is $880, how much money is invested in bonds and how much is invest..

  How many tickets must be sold for the team

Each fan gets a free bat, which costs the team $3.25 per bat. How many tickets must be sold for the team to break even on holding a game?

  Determine intervals on which profit function is increasing

A manufacturer sells video games with the following cost and revenue functions (in dollars) where x is the number of games sold. Determine the intervals on which the profit function is increasing.

  Endocrinologyaddison''s disease

A 45-year-old male from the Midwest presented with the following symptoms during February: weakness, fatigue, orthostatic hypotension, weight loss, dehydration, and decreased cold tolerance. His blood chemistry values follow:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd