Strategy nash equilibrium, Basic Statistics

Assignment Help:

Consider a population of consumers uniformly distributed along the interval from left-hand (x = 0) to right-hand (x=1). The mass of consumers is 1. There are two firms (F1 and F2) that supply homogrnouse goods. The objective of each firm is to maximize its profit. The price is regulated at p. each of the riems simultaneously chooses its location (i.e. a point on the line between x=0 and x=1). The consumers observe the firm's choice, and then each consumer buys from the firm whose location is closest to the consumer's position on the line. If the two firms locate at a same point, they equally split the consumer demand.

For example, if Fi locates as in the following figure, the left-hand consumers buy from F1 and the right-hand consumers buy from F2.

1. In this case, what is a pure-strategy Nash equilibrium? You must explain how to derive it.

2. When there are three firms, no pure-strategy Nash equilibrium exists. Prove it.

3. When there are four firms, what is a pure-strategy Nash equilibrium? You must explain how to derive it.

1137_Derive the pure strategy Nash equilibrium3.png


Related Discussions:- Strategy nash equilibrium

Rejection of null hypothesis - testing of hypothesis, Two researchers test ...

Two researchers test the same hypothesis. Researcher A rejects the null hypothesis and researcher B fails to reject the null hypothesis.  Discuss three reasons that could cause the

What is account code, The three-character alpha/numeric code allocated by t...

The three-character alpha/numeric code allocated by the Workplace of Economical Control (OFM) to recognize each account.

Prepare the journal entries, 1. Unrestricted cash contributions receiv...

1. Unrestricted cash contributions received during the year, $300,000. 2. Restricted cash contributions were received during the year for the following: Education

Analysis and interpretation business report, Case Study. Using the data, pr...

Case Study. Using the data, prepare a report that analyses the profitability, liquidity and solvency of a Accessorize Pty Ltd and help the owner to decided whether to purchase the

Structural analysis and probability , 1.) Consider two chains R and S, each...

1.) Consider two chains R and S, each having 3 and 6 links respectively. Each link's resisting strength is normally distributed with a mean of 60,000 psi and standard deviation of

How long it takes a ball to fall to the bottom of a cone, A game that frien...

A game that friends and I try to play to guess how long it takes a ball to fall to the bottom of a cone and how many revolutions around the cone it will take. I do not have a lot

A congruential unit random number generator, Suppose the arrival times of p...

Suppose the arrival times of phone calls in a help centre follow a Poisson process with rate 20 per hour (so the inter-arrival times are independent exponential random variables).

Discuss the role that racism played in public policies, Discuss the role th...

Discuss the role that racism played in public policies related to urban housing throughout the twentieth century. Did this racism manifest itself solely on an individual level (i.e

Study guide, I have a midterm coming up the teacher is allowing us to have ...

I have a midterm coming up the teacher is allowing us to have a front & back cheats on anything we want on it. Is there a way you guys can make me one?

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