Find the nash equilibria - strategic game, Game Theory

Assignment Help:

Two people are engaged in a joint project. If each person i puts in the e ort xi, a nonnegative number equal to at most 1, which costs her c(xi), the outcome of the project is worth f(x1; x2). The worth of the project is split equally between the two people, regardless of their effort levels.

(a) Formulate this situation as a strategic game.

(b) Find its Nash equilibria when i. f(x1; x2) = 3x1x2, c(xi) = x2i , for i = 1; 2.

ii. f(x1; x2) = 4x1x2, c(xi) = xi, for i = 1; 2.

(c) In each case, is there a pair of e ort levels that yields both players higher payoffs than the Nash equilibrium e ort levels?

 


Related Discussions:- Find the nash equilibria - strategic game

Strictly dominant strategy , A strategy is strictly dominant if, no matter ...

A strategy is strictly dominant if, no matter what the other players do, the strategy earns a player a strictly higher payoff than the other. Hence, a method is strictly dominant i

Reserve worth , A reserve worth is that the minimum acceptable bid in an au...

A reserve worth is that the minimum acceptable bid in an auction. If no bidder submits a bid higher than the reserve worth, the auctioneer keeps the item offered for sale. Alternat

Identification problem, Identification is a problem of model formultion, ra...

Identification is a problem of model formultion, rather than inf nlnde! estimation or appraisal. We say a model is identified if it is in a unique statistical form, enabling unique

Utility, In any game, utility represents the motivations of players. A util...

In any game, utility represents the motivations of players. A utility perform for a given player assigns variety for each potential outcome of the sport with the property that a be

Multiple item auction, Normal 0 false false false EN-US...

Normal 0 false false false EN-US X-NONE X-NONE

Cournot, Nineteenth century French economist attributed with the introducti...

Nineteenth century French economist attributed with the introduction of the theory of profit maximizing producers. In his masterpiece, The Recherches, published in 1838, Cournot pr

Paired prisoners'' dilemma, Paired Prisoners' Dilemma Students can be p...

Paired Prisoners' Dilemma Students can be paired off and instructed to play several ver-sions of a particular game with a prisoners' dilemma structure.Provide each pair with a

Grim trigger strategy, A trigger strategy sometimes applied to repeated pri...

A trigger strategy sometimes applied to repeated prisoner's dilemmas during which a player begins by cooperating within the initial amount, and continues to cooperate till one defe

Low rationality, One charm of evolutionary game theory is that it permits f...

One charm of evolutionary game theory is that it permits for relaxation of the normal fully-informed rational actor assumption. People, or agents, are assumed to be myopic, within

Write Your Message!

Captcha
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