2
votes
Accepted
About infinite strategy sets and $\epsilon$-equilibrium from Game Theory: Analysis of Confilct by Roger Myerson
It doesn't matter whether one uses mixed or pure strategies in that place.
If a mixed strategy $\tau_i\in\Delta(C_i)$ leads to a payoff larger than $u_i(\sigma)+\epsilon$, it must put positive ...
- 11.7k
2
votes
Accepted
Auction with independent private values - An example from Game Theory: Analysis of Conflict by Roger Myerson
(1) The auction is a Bayesian game. Players' types are their values, and their actions are their bids. A strategy in a Bayesian game is a function mapping types to actions. Here, this is a "bid-...
- 6,550
1
vote
Has mathematical economics contributed to the mathematics of space exploration?
In the history of dynamic programming some economic works are considered pioneering contributions to the theory of dynamic programming (and in this sense it can be said that they contributed to ...
- 3,322
1
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Mean preserving spread of a lottery
Let $F$ be the cdf of the uniform distribution on $[-1,1]$. Since $F$ and $G$ have the same mean, $G$ is a mean-preserving spread of $F$ if and only if
\begin{equation}
\int_{-\infty}^x F(t)\mathrm dt ...
- 15.4k
1
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Complex Analysis VS Differential Geometry as signals/preparation for grad school?
It's very personal and no right answer, but I would go for Complex Analysis - it doesn't come up explicitly but it will be behind a lot of the time series results in econometrics and macro sequences ...
- 140
1
vote
Accepted
Understanding Duality between Individual and Collective Maximization in Macroeconomic Models
The proof of the first welfare theorem is almost the same as the one you are familiar with from MWG. The main difference is that if you have recursive budget constraints, you have to show that you can ...
- 11.7k
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