Unique symmetric pure strategy nash equilibrium of game

Assignment Help Business Economics

Reference no: EM13986249

In a game with eight players, each player has x > 10 coins. Each player also chooses the number of coins to contribute to a 'common fund'. The remaining coins are deposited into a 'bank'. Each coin contributed to the common fund relieves 23 - 0.25a in return (where 'a' is the total number of coins contributed to the fund). Each coins contributed to the 'bank' gets a return of 5. The utility function of each player is the total return from all x tokens.

Formulate this as a simultaneous-move game, and find the total amount contributed to the common fund in the unique symmetric (same contribution for each player) pure strategy Nash equilibrium of the game. Why is this outcome not socially optimal?

Reference no: EM13986249

Questions Cloud

Case of aggressive price war between these two firms : There are only 2 firms in a market facing same demand curve as follows: Q = 120 – 10P The marginal cost of each firm are, respectively, MC1 = 4 + 0.2 Q1 and MC2 = 4 + 0.2 Q2 a). Find the profit maximization level of output for both firms. b). which f..

How can macys corporation apply cultural change : How can Macy's corporation apply cultural change to the organization to improve overall growth of the company as a whole?

Allocation methods-efficiency and fairness : Review the “EYE on Your Life” caption titled “Allocation Methods, Efficiency, and Fairness” on page 161 in the textbook. Briefly describe whether these resources were allocated efficiently. Think about how you can check whether marginal benefit equal..

Use of venturis and orifice plates to measure flowrate : In the library or elsewhere, read about the use of venturis and orifice plates to measure flowrate. Describe in words with consideration of the Bernoulli equation how these devices work.

Unique symmetric pure strategy nash equilibrium of game : In a game with eight players, each player has x > 10 coins. Each player also chooses the number of coins to contribute to a 'common fund'. The remaining coins are deposited into a 'bank'. Formulate this as a simultaneous-move game, and find the total..

Initial concentrations : Reaction: S2O3 2-(aq) + 2H+(aq) → SO2(g) + S(s) + H2O(l) Initial Concentrations: Na2S2O3: .201 M

What is the frquency of the light in the liquid : A beam of light having a frequency in a vacuum of 6.0x1014 Hz enters a liquid of refractive index 2.0. It then emerges through a piece of glass of refractive indez of 1.5. What is the frquency of the light in the liquid?

Spectroscopy is used for a molecule with no vapor pressure : What spectroscopy is used for a molecule with no vapor pressure?

Calculate the exact angles the light travels at each time : Calculate the exact angles the light travels at each time it refracts or reflects, remember that the normal for the side of the glass block is perpendicular to the normal for the top of the glass block.

User Account

All Pages