Questions tagged [solution-concept]
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Stability vs profit maximisation
I have a very general question to ask - if I am getting multiple equilibrium and I have to check which one will be picked ie. which Solution is stable, can I check it by comparing whichever produces ...
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Why are Mixed Strategy Nash Equilibria special cases of Correlated Equilibria and Coarse Correlated Equilibria?
In a Mixed Strategy Nash Equilibrium, each player constructs their own probability distribution over the set of their respective possible strategies.
In a Correlated Equilibrium or a Coarse Correlated ...
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Forward Induction Procedure
Does a mechanical set of rules or algorithm exist for doing forward induction on a game tree, or is it an "every problem is too unique and requires its own reasoning" type of situation? I ...
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Max of the tax provenue [duplicate]
I have this utility function:
$$u(c,l)=c-\frac{\eta}{\eta+1}(24-l)^{\frac{\eta+1}{\eta}}$$
where c is consumption and l is sparetime.
Then I also think we must have the condition: $$pc+wl=24w$$ where ...
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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 ...
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Equilibrium with Externalities: Solving without FOC
I have a general equilibrium problem, where households given objective function $U(c,n)$ solve for working hours and consumption $n, c$, and firms use labor to produce a consumption good - their ...
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Is a Nash equilibrium anything more than what it is?
(Sorry for the fuzzy title, could not think of something more informative. Feel free to suggest improvements)
This question is somewhat of a generalization of "Osborne, Nash equilibria and the ...
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