# Questions tagged [nash-equilibrium]

A basic solution concept in game theory that requires each player to select their best response to the strategies chosen by others.

128 questions
Filter by
Sorted by
Tagged with
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.
24 views

### Setting up a matrix in Game theory,

I need some help with this one. I can't even think how to settle up this matrix, since I don't get what what pay off it should be in each cell. Am I missing something in this text? It's like I can'...
92 views

### Is the Nash product really maximised ex post?

In my game theory class this term, we studied Nash bargaining. It is only now when starting to prepare for the exam that I have come to realise there is something I fundamentally don't understand, and ...
38 views

### Pure Nash Equilibria 3 players game

I'm trying to solve this pure-strategy Nash equilibria of this game below: I highlighted the best pay off for player 1 and 2. But I don't get it when it comes to player 3. The correct answer is (A) ...
53 views

### What is the subgame perfect pricing policy for seller?

Suppose there is a seller S who is selling to 3 different potential customers H, M, L The good is a durable good and it's utility in terms of dollar equivalent is as in the picture below: So if H ...
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 ...
48 views

### Incomplete information in multi stage game

I would like to solve a game where firms have private information about their own type, but only know the distribution of the other firm's type. They interact in two stages, where the strategies ...
29 views

### REE with asymmetric information and Bayesian Nash equilibrium?

What is the difference between a Rational Expectations Equilibrium (REE) with asymmetric information and Bayesian Nash Equilibrium (BNE)? Since agents in both cases play some game or have a strategic ...
66 views

### Why is infinite recursion on the common knowledge assumption necessary?

If something is common knowledge in a game, that means that every player knows it, and every player knows that every player knows it, and so on. Are there cases where only one such level of knowing ...
54 views

177 views

### Bertrand Duopoly Equilibrium for Discrete Prices

There are two identical firms, $1$ and $2$, with zero marginal costs. They produce homogenous product, which is demanded by a unit mass of identical consumers, each of which has inelastic unit demand ...
57 views

### Unique Nash-equilibria in multi-unit auctions with uncertain participation

Setup Consider a one shot sealed bid multi-unit auction where $N$ bidders compete for $K$ identical objects and each bidder $i$ has demand $d_i\in \{1,\dots,K\}$. Bidders receive private i.i.d. ...
101 views

### Trembling hand perfection and weakly dominated strategies

It is well known that players cannot use weakly dominated strategies in a trembling hand perfect equilibrium. My question, however, is a little different: does iterated deletion of weakly dominated ...
38 views

### Fill out Normal-Form Game to obtain exactly one mixed equilibrium

I'm given the following incomplete Normal-Form Game: | L | R +-------- O|1,?|7,? U|?,2|?,1 First I was asked to fill out the missing pieces to obtain a game ...
31 views

### Argue that no further mixed Nash Equilibria can exists

I'm looking at the following Normal-Form Game: ...
174 views

### Difference between Nash equilibrium and Pareto Efficiency

Nash Equilibrium is defined as a solution concept referring to a best outcome which players won't want to unilaterally deviate given the response of other players doesn't change. To me it seems like ...
70 views

### Maximum-support Nash equilibria in zero-sum games

Context: I would like to know how likely a player is to pick a specific action, provided that he plays optimally and the action is optimal. Phrased like this, the question is ill-defined. But is there ...
37 views

### Non-Bayesian Mechanism Design

Suppose we have a mechanism where a finite number of agents possess private information that is not drawn from a probability distribution. The agents' types are given and fixed but agents only know ...
31 views

### I cannot find for this Simple shared effort level game

Each player can contribute to the project with non-negative effort. Player 1's utility is $u_1=e_1(1+e_2-s\cdot e_1)$ where $s\in [0,1]$. Player 2's utility is $u_2=e_2(1+e_1-e_2)$ For case 1, ...
39 views

### Fehr & Schmidt, ultimatum game, inequaltiy aversion, perfect subgame Nash equilibrium

I am preparing for an exam. I have found an old exam but I have no solutions for it, so I tried to solve it, but I dont know if I did it correctly and need therefore your help. The problem looks as ...
322 views

### The difference between a Nash equilibrium and Bayesian Nash equilibrium [closed]

What is the basic difference between Nash equilibrium and Bayesian equilibrium?
47 views

### NASH equilibrium [closed]

How to approach questions like these: In a two player static game with a discrete strategic space that permits each player to chose one of the four possible strategies what is the maximum number of ...
For what values $x$, $y$ the profile $(D,L)$ is Pareto optimal? \begin{array}{c|ccc} & L & R \\ \hline U & x,5 & x+2,y \\ D& 1,-1 & x,0 \\ \end{array} Is correct $x<1$ ? ...