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

Define disposable incomeand dumping, Define Disposable Incomeand dumping ...

Define Disposable Incomeand dumping Disposable Income : The amount of income left after as deductions as income tax, pension contributions and national insurance. More genera

Demand analysis, all information about demand analysis

all information about demand analysis

Intermediate microeconomics, show that the necessary and sufficient conditi...

show that the necessary and sufficient conditions for consumer equilibrium under both cardinal and ordinal utility theories are identical .

Economic growth, Economic Growth: Economic Growth refers to an increas...

Economic Growth: Economic Growth refers to an increase in real aggregate output (real GDP) reflected in increased real per capita income. A country is said to experience econo

Microeconomics, Consider the following insurance market. There are two stat...

Consider the following insurance market. There are two states of the world, B and G, and two types of consumers, H and L, who have probabilities pH =0.5 and pL =0.25 (high and low

Explain hard currency, International economic relations also vary, in large...

International economic relations also vary, in large measure, on monetary issues. You are unlikely to accept the Turkish Lire in payment for your wages in this country, easily bec

Cournot model, example of cournot model

example of cournot model

Types of common property resource, Normal 0 false false fal...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Unions in a competitive market, Unions in a Competitive Market: Again, ther...

Unions in a Competitive Market: Again, there a group of economists who will rely on the use of the competitive model to demonstrate the evils of unionization. The most regular anal

Price responsiveness of supply, On Valentine's Day, the price of roses incr...

On Valentine's Day, the price of roses increases by more than the price of greeting cards. Why? (Hint: Consider what makes roses and cards different and how that difference might

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