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Is there a way to characterize the distinction between simultaneous vs sequential games? I'm trying to describe a situation where players can only take actions without knowledge of other players' ...
I'm doing this finitely repeated Prisoner's dilemma with switching costs but I have trouble showing the fact that $\varepsilon$ had to be $1 < \varepsilon < 2$. I do see why and that it is a ...
I'm studying the different variations of the ultimatum games. I've spent some time on this following game:
Assume now that each player does not only care about the amount of money she receives, but ...
I'm doing a problem set on the subject of Bayesian Nash equilibrium. I'm asked to find the pure-strategy BNE of the following. I've calculated to matrix shown below. My first concern is if I've ...
I'm trying to understand and implement in code the method in Bajari, Benkard, Levin (2007). The first stage is clear to me, as well as how to forward-simulate to obtain an estimate of the value ...
This game is taken from Schelling's Game Theory: How to Make Decisions by R.V. Dodge, in which contenders practice brinksmanship to their own advantages. It goes as follows:
Anderson, Barnes, and ...
Dynamic, Sequential, Stochastic, Extensive form and Evolutionary games.
I know what all of them mean very roughly.
I want to clarify them.
As I understand Extensive form is a description of a ...
Take a two-stage game with complete information and simultaneous actions in each state:
(1) Player 1 and 2 simultaneously choose action $a_1\in A_1$ and
$a_2\in A_2$ respectively.
(2) Player 1 and ...
Suppose no tariffs, or negligible tariffs, exist between nations A and B, and suddenly A introduces substantive tariffs on certain products A imports from B. In theory, this could lead to B and A ...
I have a little doubt in the Job Market Signalling Game. I am referring to A Primer in Game Theory: Gibbons, Chapter 4, Signaling Games
The attached paragraph refers to a Separating Equilibrium case ...
I approached this question in this way:
$(P_1,P_2), (R_1,R_2), (S_1,S_2)$ are the Nash Equilibria of the Stage 1 game. For the given strategy to be sustained as SPNE, there should be no way unilateral ...
"The SPNE of a sequential game might not necessarily be Pareto Optimal"
I understand the definitons of Nash Equilibria and Pareto Optimality and that these are not synonymous concepts. An example in ...
In a Bertrand competition with differentiated goods where firms set the prices sequentially, we have the following demand functions:
q1 is quantity of goods demanded for firm 1
q2 is quantity of ...
If I have a sequential game, i.e. in each node (that I will call $t$) only one player choose an strategy from a finite space of strategies, Is it true there always exist a subgame perfect equilibrium ...
As part of my undergraduate studies in Industrial Economics, I am trying to solve the following question:
Two price-setting firms are competing in a market for a homogeneous product. There are 10,...
( The game of “ chicken”) Two cars are driving at each other at great speeds.
If nobody changes directions, in 3 seconds they will collide and die a gruesome death,
yielding payoffs of −100 for both ...
If you were to take a game-theoretic model of a world in which each individual tried to optimize their utility function / goals then how would you go about designing a computer simulation of the ...
The question is a reformulation of an incomplete version.
Consider the following dynamic dividing a dollar game where agent 1 claims $x(t)$ of the dollar and agent 2 $y(t)$ (paper).
\begin{align}
&...
I am reading Demarzo, Fishman(RFS,2007). Any suggestion will be appreciated. My questions are the following:
(a)
\begin{equation*}
b_T^e(a) = \left\{\begin{array}{lll}
-e^{(\gamma-r)(...
How should I call a "part" of an extensive form game which is neither (i) a subgame, nor (ii) a stage in a repeated game?
For instance, consider the class of games constructed by "stacking" 2 ...
There are two agents $i=1,2$. Consider the following programm
\begin{align}
&V_1(x_0) := \max_u \int^\infty_0 e^{-\rho t}F_1(x(t),u(t),v(t))dt\\
&V_2(x_0) := \max_v \int^\infty_0 e^{-\rho t}...
(The question is loosely relatet to this thread.)
In the paper "Feedback Equilibria for a class of non-linear Differential Games" by Mäler et al. it is stated (p. 14)
In fact sufficiency is ...
In Benjamin Edelman, Michael Ostrovsky, and Michael Schwarz(2007), there's a hand-waving argument to justify their setting as a game of complete information:
we assume that all values are common
...
There are two agents $i=1,2$. The state $k$ is governed by $\tau_i\in[0,1]$ where
\begin{align}
\dot{k} = f(k,\tau_1,\tau_2).
\end{align}
Define the value function of player $i$ by
\begin{align}
v_i(...
In this video (from 7: 30 to 9: 00)on Youtube, Battigalli mentions the state of world for a simple three-legged centipede game, which, in his own word, is
"$\ldots$a description of everything ...
I'm interested to know results on repeated games indexing each stage game by $\mathbb Z$ which contrast with those indexed by $\mathbb Z_+$.
It seems to me this could be quite different from repeated ...
The only relevant model I'm aware of is Liu Qingmin(2011 R.E.S). Is there any other decent models dealing with the mechanism of online markets under reputation system, and perhaps linking to ...
In a context that future return is discounted by a constant parameter, one-shot deviation principle holds for both repeated games and dynamic programming.
Because, in repeated games, a one-shot ...
In the last few years, the estimator proposed by Bajari, Benkard, and Levin ('07) for dynamic games has been gaining popularity. It is relatively straight forward and is one of the only viable options ...
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