Questions tagged [solution-concept]

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Are there Sequential Equilibria that are not Trembling Hand Perfect Equilibria, that don't involve Weakly Dominated strategies?

I'm taking an advanced course (graduate level) in Game Theory. My class has covered several equilibrium concepts, up to Sequential Equilibrium. The professor said that there are already more ...
Nicolas Torres's user avatar
1 vote
1 answer
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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 ...
Elina Gilbert's user avatar
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1 answer
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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 ...
user10478's user avatar
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3 votes
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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 ...
user10478's user avatar
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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 ...
Lifeni's user avatar
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2 votes
1 answer
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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 ...
Elina Gilbert's user avatar
6 votes
1 answer
264 views

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 ...
FooBar's user avatar
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6 votes
1 answer
392 views

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 ...
Martin Van der Linden's user avatar