Bayesian Nash Equilibrium, Microeconomics

Assignment Help:

Consider 2 firms i=1,2 producing quantities q1 and q2 respectively. Let the market price be given by P=a-b(q1+q2). Firm 1''s Marginal cost c is common knowledge but 2''s cost is not known to 1 it is c+s where s is contained in (-a,a) with a distribution F(.) and E(s)=0. If s<0 firm 2 is more efficient than firm 1 and if s>0 firm 2 is less efficient than firm 1. Find the Bayesian Nash Equilibrium

Related Discussions:- Bayesian Nash Equilibrium

.economic regulation, are most local phone companies natural monopolies?

are most local phone companies natural monopolies?

Aid of production possibilty curve, aid of production possibilty curve

aid of production possibilty curve

Arc elasticity of demand, Arc Elasticity of Demand - Arc elasticity cal...

Arc Elasticity of Demand - Arc elasticity calculates elasticity over the range of prices - The formula of it is: * Arc Elasticity of Demand: An Example

Advantages and disadvantages of a monopoly market, Problem 1: i) ‘There...

Problem 1: i) ‘There is a trade-off between inflation and unemployment.' Do you agree with this statement? Justify your example using appropriate diagrams. ii) Mauritius is

Williamson modle and managerial dicretion, objestive of williamson modle

objestive of williamson modle

Normal and abnormal profits., the diagram used to illustrate of abnormal an...

the diagram used to illustrate of abnormal and normal profits

Explain the industrial revolution, The Industrial Revolution The centur...

The Industrial Revolution The century after 1750, saw the industrial revolution proper: invention of steam engine, spinning jenny, power loom, hydraulic press, railroad locomot

Assignment, what is the theory of second best ? prove the theorem with the ...

what is the theory of second best ? prove the theorem with the help of a diagram .

What are the goal of sustainability, The goal of sustainability requires th...

The goal of sustainability requires that we address what three questions? The goal of sustainability needs that we address whether economic activities are financially sustainab

Bains model of limit pricing., explain diagrammatically the bains model of ...

explain diagrammatically the bains model of limit pricing.

Write Your Message!

Name

Email id

Message

Verfication Code

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!

Submit Assignment

User Account

All Pages