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Tagged with nash-equilibrium optimization
3 questions
2
votes
0
answers
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Nash Equilibrium as a Saddle Point
Consider the zero-sum game $A = \begin{bmatrix}5 & 3 \\ 4 & -3\end{bmatrix}$. The interpretation is that Row Player chooses a probability distribution over Top and Bottom $\vec x = \begin{...
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3
votes
1
answer
134
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Nash Equilibrium with Constraints on Decision Variables
I am trying to solve a two player game with constraints on decision variables. The general structure looks something like this:
$$\max_{x_1} f(x_1, x_2)$$
$$\max_{x_2} g(x_1, x_2)$$
subject to
$$x_1 + ...
2
votes
1
answer
42
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Computing optimum efforts
Consider the following cost function:
$$c(e_1, e_2) = (\beta_1e_1 + \beta_2e_2)^2$$
The value function is:
$$v = v_0 - [l_1(1-e_1) + l_2(1-e_2)]$$
How do I compute the optimum efforts $e_1$ and $...
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