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

Social cost of monopoly, Price Discrimination: occurs when the same produc...

Price Discrimination: occurs when the same product is sold at different prices to different consumers. A monopolist divided his consumers into groups and sells his product at vary

Demand function is homogeneous of degree zero, Demand Function is Homogeneo...

Demand Function is Homogeneous of Degree Zero: Mathematical Presentation we will show that demand function is homogeneous of degree zero in prices and money income. In o

Axioms - revealed preference theory, Axioms: Revealed preference theor...

Axioms: Revealed preference theory is based on the axioms listed below. • Consumer will spend all her income on goods. The consumer equilibrium always remains on the budg

Bainlimitpricetheory, Explainbainlimitpricetheory

Explainbainlimitpricetheory

Detergent Cartel problem, 2) Proctor & Gamble (P&G) and the Lever Co. decid...

2) Proctor & Gamble (P&G) and the Lever Co. decide to form a laundry detergent cartel for future sales in Europe. Lever is more efficient than P&G. a)illustrate graphically how the

The production theory, list all the type of cost

list all the type of cost

Capital account, Capital Account: The Capital Account presents transfe...

Capital Account: The Capital Account presents transfers of money and other capital items and changes in the country's foreign assets and liabilities resulting from the transac

F block, LANTHENOIDS

LANTHENOIDS

Principle of economics , A city government regulates taxi fares. It also l...

A city government regulates taxi fares. It also limits the number of taxicabs (by licensing), and has not changed the limit on cabs for lot of years. At one time vacant taxis wer

Determinants of private demand - regional disparity, Determinants of Privat...

Determinants of Private Demand - Regional Disparity There is imbalance in distribution of facilities. There are over 600000 villages in India. And there were over 8737 degree

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