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

Consumer behaviours, what are the weaknes of consumer behaviour

what are the weaknes of consumer behaviour

Combined ppc, How do I draw and interpret a combined ppc curve?

How do I draw and interpret a combined ppc curve?

Microeconomics, Which of the following statements is correct? a. Consumers ...

Which of the following statements is correct? a. Consumers have the ability to buy everything they desire. b. A consumer''s budget line shows the limits to what a consumer can buy.

Elasticity, not that long ago we experienced the excitement of thinking we ...

not that long ago we experienced the excitement of thinking we would have cheaper online books and free music. these visions that we had of a free market utopia that blinded us to

Preferences toward risk, PREFERENCES TOWARD RISK * Choosing Among Risky...

PREFERENCES TOWARD RISK * Choosing Among Risky Alternatives - Assume - Consumption of a single commodity - The consumer knows all probabilities - Payoffs measured i

Choose a topic from microeconomics ., choose a topic from microeconomics th...

choose a topic from microeconomics that matters to you and find a recent news article covering that topic?

Labour supply, Discuss how the opportunity cost principle influence a suppl...

Discuss how the opportunity cost principle influence a supplier''s decision to supply labour

Price elasticity, The price elasticity ( ε ) of demand for Q has been esti...

The price elasticity ( ε ) of demand for Q has been estimated at -0.5. Current consumption Q* is 70 units and market price (P*) is 0.70. a. Fit a linear demand curve to the obs

What is the difference between gdp and gnp, What is the difference between ...

What is the difference between GDP and GNP? Gross domestic product (GDP) is the value of the total final output formed inside a country, during a given year. GDP, like all mea

Contribution of capital accumulation, Question: Explain the contribution ...

Question: Explain the contribution of capital accumulation in the progress of an economy? Capital makes the technological progress of the economy possible. Different technol

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