# 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.

538 questions
Filter by
Sorted by
Tagged with
31 views

### Confusing Bertrand Problem [closed]

I am attempting to solve a Bertrand Equilibrium. I am given the information: $$p_1 = a-q_1-bq_2 \text{ and } p_2=a-q_2-bq_1$$ Profit = $(p_1-c)q_1$ for firm 1 and the same thing respectively ...
26 views

### $a\geq 0$, $x\succsim y$ implies $x+a\succsim y+a$ so the preference is linear?

$\succsim$ is a continuous and local non-satiate weak order. $x,y,a$ are vectors in $\mathbb R^n$ We say $a\geq0$ if all directions of the vector $a$ is greater or equal to zero. We want to prove (...
41 views

### Difference(s) between Rational Expectations Equilibrium and Nash equilibium

What is the major difference between the notion of rational expectations equilibrium and Nash equilibium? And why do we, only, have a rational expectation about the first moment (the price) in the ...
12 views

### Game Theory - Trying to find a 2x2 game that represents this interval [closed]

I know how to calculate equilibrium, however, how do I work backwards? i.e. How do I find the payoffs that correspond to a set of mixed Nash equilibria whereby the interval for Player 1 is exactly ...
21 views

### I'm having a hard time solving this game to see if pooling can be sustained [closed]

The problem states: "Consider the extensive form game of kitchen work below. Can a pooling equilibrium be sustained? Show mathematically and explain intuitively.
14 views

72 views

### Information and search

Consider a game where a decision maker (DM) has to choose action $l\in \mathcal{Y}$ possibly without being fully aware of the state of the world $V$. The choice set $\mathcal{Y}$ has cardinality $L$....
45 views

### Minimizing consumption in a single market( Partial Equilibrium)

Let there be a good X where the optimal consumption is 0; i.e the social costs for any unit provided would always be greater than the utility surplus of the market. We know that prohibiting it( ...
59 views

### Simple hawk-dove type super-game

We have the following super-game: \begin{array}{cc} & a_1 & a_2 \\ a_1 & 0,0 & -1,1 \\ a_2 & 1,-1 & -2,-2 \end{array} I want to show that both the trigger (or grim) ...
24 views

### Refinements in signaling games with three sender types

What are the pros and cons of the Intuitive Criterion and the Criterion of Divinity in signaling games with three types? I find that separating equilibria often survive the intuitive criterion, ...
40 views

### Is there any overlap between evolutionary and behavioral game theory

Evolutionary and Behavioral game theory are two different techniques. Both seem to be inspired from biology. So is there any overlap between their theory? Are the two complementary to each other in ...
43 views

### Obvious Dominance and Milipede Games (Question to Pycia and Troyan (2019)

I stumbled over Millipede Games and obvious Dominance in the paper "A Theory of Simplicity in Games and Mechanism Design" by Pycia and Troyan. On page 12 the authors define millipede Games. They ...
52 views

### What would be the consequences of Downsizing on the economy?

In the 2017 movie Downsizing, a chunk of the population decides to reduce their body size to just a few inches. What would be the consequences of this on the economy? I'd like to know chronologically ...
29 views

### Existence of a subgame perfect Nash-equilibrium

Existence of a subgame perfect Nash-equilibrium Given is the following game The game is repeated finitely many times and the total payoff is the sum of the payoff from each repetition. If we assume ...
36 views

### Pure and Mixed Nash Equilibrium algorithm gives different results

I have a game represented by following table: It is clear that there is a pure Nash equilibrium at 4,2 (both players do not cooperate, player 1 awarded 4 points and player 2 awarded 2 points). Now ...
62 views

### Allocating chores using auctions

I live in a student dorm with 16 people and we share a kitchen. Every week someone has to clean the kitchen. Right now we just take turns in a way determined by the numbers of our respective rooms. ...
20 views

### Extended game mixed SPNE

I have doubts about whether my solution is right. Let $x>z>y>1$. Given the extended game above, we have two subgames and will find the Nash equilibria of these. Observe that player 2 will ...
32 views

19 views

### Who is the first person/paper to introduce “mixed strategy”?

Who is the first person/paper to introduce "mixed strategy"? The PNAS by Nash used this notion without citing anyone. Does the earlier book: Von Neumann, J., and Morgenstern, O., The Theory of Games ...
23 views

### Is there some definition about risk sharing?

I was searching for a definition of risk sharing and I have found the following: $\underline{Definition:}$ Risk Sharing — also known as "risk distribution," risk sharing means that the premiums and ...
37 views

### What is the implicaiton of agent risk neutrality in moral hazard?

I heard that risk-neutrality of agent in moral hazard imply that the action associated with first-best and the one associated with second-best will be the same. Is it true and why is it so? Are there ...
42 views

### What does “steep incentive contract” mean in the context of adverse selection?

This term was mentioned in a slide and when I looked online, the only thing which I could find talking about this is this paper. For example,in the cost-plus-incentive contract x(T, c) = a(T) - a'...