# 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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### What kind of figures are insightful in game theory?

I am finishing my thesis on a signalling model in which I characterize the perfect bayesian equilibria of the game. However, I find that my final expressions are too mathematical and that the ...
1 vote
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### Mixed Strategy Nash Equilibirum, Contributing to a Public Good

I'm a economics undergrad student currently studying the basics of Game Theory. I'm trying to solve the following mixed strategy game: -Two players, Player 1 and Player 2 -Available actions: Each ...
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### Why is the number of subgames in these two games different?

This game has only 1 subgame (the game itself). This game has 3 subgames. Why is it different? I don't know how to judge the number of subgames.
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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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### All-pay auction question problem

In a sealed bid all pay auction, the highest bidder receives the good but every buyer pays the seller the amount of her bid regardless of whether she wins. Suppose there are two bidders whose ...
1 vote
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### Finding the mixed-strategy Nash equilibrium in this game

Find the pure and mixed-strategy Nash equilibrium in this game: \begin{array}{c|cccc} P_1 \text{/} P_2 & \text{Ll} & \text{Lr} & \text{Rl} & \text{Rr} \\ \hline \text{T} & (3,2) &...
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### Gale-Shapley Follow-up Literature and General Questions

The Gale-Shapley Algorithm is a way of matchmaking between two different entities of people. It guarantees that every individual player is matched and that the matches are stable. What sort of ...
1 vote
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### Can a mixed strategy that is strictly dominant exist if there is no strictly dominant pure strategy?

Consider a simultaneous-move game with two players, 1 and 2. Player 1 does not have any pure strategy that is a strictly dominant strategy. Is it possible for player 1 to have a mixed strategy that is ...
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### Why does the voter paradox entail 0 turnout?

The decision to cast a vote (under a simplistic FPTP two-candidate model), as formalised by Downs can be written as follows: $pB \geq C$ where $p$ is the probability of you changing the outcome, $B$ ...
1 vote
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### Judge prosecutor example of Kameinica and Gentzkow

Based on Kamenica and Gentzkow example about the prosecutor and the judge. The utilities of the sender and the receiver are $v(\alpha,\omega)=\alpha$ and $u(\alpha,\omega)=-(\alpha-\omega)^2$. The ...
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### Bertrand Duopoly game

Consider the Bertrand’s Duopoly game with demand D(p) = α − p. Assume that each firm is restricted to choose a price is an integer. Also, assume that each firm has a constant marginal cost c is an ...
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### How infinite Nash equilibria are possible in a game?

I was studying games when one of the players seems to be indifferent between two or more pure strategies because he gets the same payoff with each strategy. We say that there are infinite Nash ...
1 vote
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### Can anyone help with these calculations?

This is from the this paper in section $3$ about the two period example. Suppose that we have the following two period, $t=1,2$, sender(S) - receiver(R) model. For an action path $a=(a_1,a_2)$ and a ...
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### Expected number of players buying a product

There is a continuum of players who want to buy a product. The utility to each player from that product is $q$. If he does not buy the product, his utility is zero. The random variable, $q$, has a ...
1 vote
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### How do I solve for the Nash equilibria in the Hotelling price competition model

I'm trying to find the Nash equilibria in the following problem: Two firms produce an identical product with no fixed costs. The marginal cost of each firm $i=1,2$ is $c_i\in (0,1)$. Customers are ...
1 vote
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### Why did Bergemann and Morris chose a different setting with respect to Kamenica and Gentzkow only to reach to the same results?

Why did Bergemann and Morris choose a different setting with respect to Kamenica and Gentzkow only to reach to the same results? However none of both approaches seem to present the problem in a ...
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### Mechanism design making the Government reveil its indiferrence price towards goods

In order to Tax non-monetary property and wealth the government sets an arbitrary price (they are not even personalized assesments) and often people transact below that price. I have bought and sold ...
1 vote
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### Multi dimensional Auction in economics

I am following this paper . They have different suppliers and one buyer and They are using auction to select best suppliers Suppliers will submit. suppliers offer a multidimensional bidding on quality ...
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### Differences of two discount factors

In game theory at the undergraduate level, the discount factor is denoted as $\delta \in [0,1]$. On the other hand, in macroeconomics at the graduate level, the notation $e^{-\rho t}$ is used($t$ is ...
1 vote
Hi, everyone! I'd appreciate some help with this problem, please. Suppose that a seller puts a one-unit good on the market, and a buyer comes around with an unknown valuation $θ$. This buyer has a ...