Giskard
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Why do large players suffer more for complete finking in tit-for-tat strategy?
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2 votes

This really depends on how one defines a "large" player. But for the Saudi Arabia/OPEC situation mentioned in the PBS article you linked one can imagine a made-up numerical example like this:...

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Clarifying the example of large firms tilt to cooperate after shocks of competition in game theory?
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2 votes

This may be easy to understand in a "public good game" context. (The examples are rather about club goods, but the logic is the same.) A "public good game" can be thought of as a ...

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Bertrand competition with homogenous good and Hotelling's spatial model
2 votes

Nudge: Read the paper On Hotelling's "Stability in Competition" by d'Aspremont, Gabszewicz and Thisse.

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Do students for economics study theory about no-money-economies and about no-interest-economies (ancient or futuristic)?
3 votes

In mathematical models of economies (e.g., exchange economies), it is not necessary to include money. Prices do turn up as mathematical constructs ("shadow prices"). Modern economies have ...

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What can be considered as a "message"
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2 votes

Given that $T^i$ is $i's$ finite set of messages and the mechanism uses the signal function to map $T$ to a signal, the architects of the mechanism can use any arbitrary label for the individual ...

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What words should we normally use for x-axis in a economic or finance research paper?
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3 votes

I find "horizontal axis" better than x-axis, because it does not use the name of a potential variable. However, I think your whole sentence focuses to much on what we see, and not on the ...

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Asking for reference for the relationship between vaccine openness and education levels ( beyond COVID-19)
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2 votes

You could search on Google Scholar and restrict the range to end in 2019, thus avoiding all Covid-19 related literature. Some results for the range 1990-2019, keywords "vaccine openness education ...

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What are the causes of negative real interest rates?
10 votes

If there is inflation, what is your alternative? If you do not lend, your money loses even more of its value. A numerical example: If inflation is 5% and you can lend at 2% nominal interest rate, you ...

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Definition of a $k-$strong Nash Equilibrium
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3 votes

A lot of cooperative game theory deals with transferable utility games, where players can easily transfer "utility" or "payoff" to each other. Another class is non-transferable ...

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What percentage of utils do the top 1% pay in tax
1 votes

I would argue that utility theory is unfortunately meaningless in this context. As you point out, interpersonal utility comparisons don't work, I can always multiply a utility function by 10 and it ...

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If I have a production function f where the marginal product of all the input is constant, can f exhibit decreasing returns to scale?
2 votes

Yes: $$ f(x_1,x_2)=-x_1x_2 $$ has constant marginal return in both inputs and decreasing return to scale by your definition. EDIT: Answer above assumes OP meant "constant" as constant w.r.t....

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Risk seeking investors: Do they benefit from return at all?
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3 votes

Is it because risk seeking investors also get some utility from expected return? Yes. It is a common assumption that investors invest to get returns, so in this good space returns are indeed a "...

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Why the significance level of variables of interest decrease in subsampling?
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2 votes

There can be several reasons. In case the subsamples are not random, the variable may be significant on a subsample and not on another. This would be a case of omitted variables. The larger a sample,...

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What is the meaning of the support set in game theory?
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3 votes

From Wikipedia: Suppose that $f : X \to \mathbb{R}$ is a real-valued function whose domain is an arbitrary set $X.$ The set-theoretic support of $f$, written $\operatorname{supp}(f),$ is the set of ...

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Mathematically show that MC cross AC can only occur on upward sloping part of MC curve
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1 votes

Given the assumption that $C(q)$ is continuously differentiable we have for all $q$: $$ qAC(q) = C( q ) = FC + \int_0^{q} MC(x) \text{d}x. $$ Taking the difference for any pair $q,\hat{q}$: $$ qAC(q) ...

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Mathematically show that MC cross AC can only occur on upward sloping part of MC curve
2 votes

You claim that AC is minimised at MC=AC thus at this quantity $q_c$ we have $AC'(q_c) = 0$. We will show that given the assumptions $MC'(q_c) \geq 0$, that is $MC$ cannot be decreasing in $q$ at ...

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Resource Feasibility Definition
2 votes

An allocation is feasible if the aggregate consumption can be covered by production and the endowments.

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Proof of Quasiconcavity of Utility Function
3 votes

Is it possible to show quasiconcavity from its definition, i.e., $u(ax_1+(1-a)y_1,ax_2+(1-a)y_2)\geq \textrm{min}\{u(x_1,x_2),u(y_1,y_2)\}$? Answer: Yes. A useful trick that can save you some ...

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How do non-US governments raise dollars?
5 votes

Like all entities except the US government: they trade for it on the currency exchange market. There are special cases when the US government gives aid without asking anything in return. A government ...

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Why West Virginia is one of the least-vaccinated states in the country due to cash giveaway announcement?
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4 votes

I am not sure why West Virginia is the least vaccinated state* in the US but If vaccination is progressing poorly in your state the government is more likely to try and encourage it by all sorts of ...

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Is Google Street View profitable?
3 votes

On profitability: From Investopedia (which is a poor source for economic principles, but hopefully acceptable for news items): ...Google does not report specific figures identifying the financial ...

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Correlated equilibrium intution
9 votes

An example to highlight the difference between correlated and uncorrelated random strategies in games of perfect information. Consider a game of Chicken with the payoff matrix Straight Chicken ...

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Is chess both a game of complete and perfect information
2 votes

From a Wikipedia page linked to in the question: [emphasis by me] Examples of games with incomplete but perfect information are conceptually more difficult to imagine, such as a Bayesian game. The ...

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Was there any currency backed by other metals than gold, silver or copper?
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7 votes

Spartan iron coins. Roman bronze coins: Aes Grave Chinese bronze coins: Ban liang (one type was bronze, not all) A non-metal "currency" backed by various industrial metals: the ...

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Relationship between capital and decreasing marginal prodcutivity
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4 votes

The claim is not that capital decreases marginal productivity, but that the marginal productivity of capital is decreasing. (See "diminishing returns.") That is, the first "unit" ...

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What is the proper way to read and/or express "price elasticity of demand"?
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1 votes

Demand is a function In economics, "demand" is an unfortunate shorthand for "demand function". Less frequently and even more unfortunately it is also used for quantity demanded at ...

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Research on the effect of government size on prosperity?
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2 votes

In Does Government Size Affect Per-Capita Income Growth? A Hierarchical Meta-Regression Analysis, Churchill, Ugur and Yew write Since the late 1970s, the received wisdom has been that government size ...

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How do you measure the MRS for more than two goods?
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3 votes

Pairwise MRS The Marginal Rate of Substitution is usually defined as a pairwise thing. E.g., in case of three goods $x,y$ and $z$, you would have $\text{MRS}_{xy}, \text{MRS}_{xz}$ and $\text{MRS}_{yz}...

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What are some alternative words for "cartel"?
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6 votes

I don't think an exact synonym exists. There are words that describe a type of cartel. You could use trust or combine, if the cartel is legal and known. You could use syndicate in case of illicit ...

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What is economic nowcasting?
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3 votes

How about "Nowcasting" by Banbura, Marta; Giannone, Domenico; Reichlin, Lucrezia (2010). Main body is 22 pages long. From the introduction of the paper: Economists have imperfect knowledge ...

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