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Results tagged with game-theory
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user 4463
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.
6
votes
Accepted
Infinitely repeated game: prisoners' dilemma
the payoff from play the trigger strategy will be:
$$ \sum_{i=0}^{\infty}(x+1) \delta^i=\frac{x+1}{1-\delta}$$
if I deviate and I play $l$ or $d$ the payoff will be
$$ 2x + \sum_{i=1}^{\infty}x \del …
- 149
2
votes
0
answers
240
views
Subgame Perfect Equilibrium with Pure Strategies in Sequential Games [closed]
If I have a sequential game, i.e. in each node (that I will call $t$) only one player choose an strategy from a finite space of strategies, Is it true there always exist a subgame perfect equilibrium …
- 149
2
votes
1
answer
364
views
How to demonstrate that a game always have a subgame-perfect equilibrium in pure strategies?
If I have an specific extensive game, with only a finite set of strategies, how can I demonstrate that the game always have a subgame-perfect equilibrium in pure strategies? My first intuition was to …
- 149
1
vote
Accepted
Cournot equilibrium question
To answer your question I will assume that
$\bf{A1}$ firm 2 always "trust" in the output reported by firm 1, and
$\bf{A2}$ firm 1 always "keep its word" if announces an output.
Without $\bf{A1}$ a …
- 149