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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.

0 votes
1 answer
117 views

Best response to convex combination of strategies

Suppose that several pure strategies in a 2-individual game have pure strategy best responses. Can we say that best responses to convex combination of those pure strategies still lie in the convex hul …
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1 vote
1 answer
283 views

Alternating offer bargaining game

In an infinite-period alternating offer bargaining game if we suppose the discount factor is $\delta=1/2$, and the increment is $0.01$, what will be the subgame perfect Nash Equilibria? It seems that …
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  • 305
2 votes
1 answer
83 views

What is 2nd round of rationalizability for a 1st price auction?

Consider a first-price auction. Suppose that we have $N$ bidders, and they believe that their opponents' values is drawn from a uniform distribution on interval $[0,1]$. Let us eliminate weakly domina …
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