Nash equilibrium, Microeconomics

Assignment Help:

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:

                               Player 2

SP                    ST

Player 1           SP                    5, 5                  -2, -1

                       ST                    10, -1               0, -1

a. Solve for all the mixed Nash equilibrium if any.

b. Among the four outcomes here, which outcome(s) are Pareto optimal (in the sense that you cannot find another outcome that makes no player worse off but some player better-off)?


Related Discussions:- Nash equilibrium

Supply of basic industrial inputs, Supply of Basic Industrial Inputs: ...

Supply of Basic Industrial Inputs: Allowing their duty-free imports by exporters would require an elaborate machinery of customs and import licensing to ensure that the impor

Explain why subsidies to domestic firms s a trade barrier, Explain why subs...

Explain why subsidies to domestic firms act as a trade barrier. A trade barrier is broadly explained as any market intervention whereby the ratio of price of exports to price o

Expenditure trends and pattern, Expenditure Trends and Pattern: Total ...

Expenditure Trends and Pattern: Total expenditure of the Centre has risen twice as fast as total revenue, although much of this reflects rising interest payments. Revenue expe

Market economy, what is market economy and how it solve the central problem...

what is market economy and how it solve the central problem

Economic instruments, Economic instruments Financial rewards, incentives an...

Economic instruments Financial rewards, incentives and penalties that operate automatically via market forces, to encourage beneficial behavior.

Econometrics, Due April 8 a) Produce some initial summary statistics of the...

Due April 8 a) Produce some initial summary statistics of the data. b) State the hypotheses that will be tested. Show me advanced results (analyses, not write-up/paper) Due April

Describe the poverty cycle, Describe the poverty cycle and suggest how a de...

Describe the poverty cycle and suggest how a developing country can break the cycle. The poverty cycle is explained as the trap developing countries can land in; low incomes →

Economics question im stuck with, The prevention of major swings in economi...

The prevention of major swings in economic activity can be handled most easily by the: A. Household sector B. business sector C. financial sector D. government sector why?

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