# Questions tagged [game-theory]

Game theory is a study of situations of strategic interaction between two or more players in which there is a predefined set of rules and an outcome associated with each choice taken.

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### Auction with independent private values - An example from Game Theory: Analysis of Conflict by Roger Myerson

I have difficulties understanding the equilibrium analysis of the following auction game: Suppose that there are $n$ bidders in an auction for a single indivisible object. Each player knows privately ...
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### Can someone help me with constructing the strategic form and calculating the set of Nash equilibria in pure strategies? [closed]

I'm trying to solve it but my solution are different every time.
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### Using Variance for Nash Equilibrium

For the mixed strategies, the expected utility (or payoff) is used to find the mixed strategy Nash Equilibrium. The main assumption is players try to maximize their expected payoffs. However, I think ...
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### Mixed Strategy Nash Equilibrium

Consider the game of Battle of Sexes, where \begin{matrix} &&Women\\ && Football & Resaurant\\ Men&Football&2,1 & 0,0 \\ &Restaurant&0,0 & 1,2 \end{...
1 vote
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### Ultimatum game where fair offers are automatically accepted

Has there been any experiments with a variant of the Ultimatum Game where a fair offer is automatically accepted? For example, the game below, where rule 2 has been added to the classic ultimatum game:...
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### Finding strategies and subgame perfect equilibria

In my game theory class we recently learned about dynamic games and I wanted to know whether I solved my homework problem correctly (and how to attempt the second part). a) Determine all strategies ...
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### Question on One Shot Deviation (Game theory)

Found this question in my practice set. This seems like a conceptually important question regarding the topic One shot deviation but I have absolutely no clue how to solve it.. Would prefer an in-...
1 vote
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### Equilibrium of Perturbed Dollar Auction Game - An Example from Game Theory: Analysis of Conflict by Roger Myerson

I am studying game theory using Myerson's textbook (Chapter 3 - Equilibria of Strategic-Form Games, Section 3.6 - The Decision-Analytic Approach to Games). I have difficulties understanding and ...
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### Can There Be a Dominant Strategy If Both Firms Choose to Match the Lowest Price in the Market in a Bertrand Model of Competition?

In a Bertrand duopoly model where firms choose to price match ie match the lowest price in the market, any price p∈[c,Pm] (where c is cost and Pm is the monopoly price) can be a Nash. Hence, there are ...
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### Nash Equillibrium - Depend On The Opponent's Strategy?

Say I have the following pay-off matrix: For a one-shot game, it is easy to see, that (low, low) is the only Nash Equillibrium in the payoff-matrix. However, say we're playing an infinitely repeated ...
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### AIC Calculation

Our object is calculating AIC, and we are unsure whether we can use our measure below when calculating AIC. The following are the data from the experiments and our method to calculate the information ...
1 vote
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### Cutoff rule-mechanism question

I was checking on this paper where they define some rule-mechanism that is called cutoff rule-mechanism. I do not really understand why is this useful and how is this defined. Any help would be ...
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### Stackelberg equilibrium with arbitrary number of firms

Consider a market, where N firms with average cost c compete in quantities. Assume linear demand P=a-bQ. Assume that N is arbitrary. a)Find the equilibrium of the game, where these N firms compete a ...
1 vote
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1 vote
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### First price sealed-bid auction with discrete bids

I really couldn't solve this problem. Can someone help me with this? Consider the sealed-bid auction for a single item, where there are only two allowable bids. There are two risk-neutral bidders who ...
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### Two questions in Bergemann and Morris (2016) - BCE and Comparison of Information Structures in games

Based on Begemann and Morris (2016) we have the following definition about a standard game of incomplete information A standard game $\Gamma = <G,S>$ of incomplete information consists of a set ...
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### Game With Natural Disruptions

Consider a static game with complete information, where each player makes a decision $a_i$ and receives a payoff $\pi_i(a_i,a_{-i})$. Now suppose there is a natural disaster modeled by a binary random ...
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### What is the difference between the utility with the ex-post or the ex-ante utility function?

What is the difference of the ex-post utility function of the utility function. For example in Bergemann and Morris (2019) the utility function is defined as an ex-post utility function. Check in page ...
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### Is there a 2*2 game with a unique NE but not dominance solvable?

Is there a 2*2 game with a unique NE but not dominance solvable? If so, could you give an example of the payoff matrix? Here is the definition of dominance solvable, "if by iterated elimination ...
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### Mechanism Design with Quantal Best Response

I was wondering if there is a sensible definition of mechanism design (incentive compatibility and individual rationality) when the agent (bidder) is only boundedly rational. In the classical ...