Find the nash equilibria, Macroeconomics

Two people are engaged in a joint project. If each person i puts in the effort xi, the outcome of the project is worth f(x1, x2). Each person's effort level xi is a number between [0,1], and effort costs c(xi). The worth of the project is split equally between the two people, regardless of their effort levels, so the net payoff of each player is

f(x1, x2)/2 - c(xi).

Draw the players Best Responses, and find the Nash equilibria when

(i) f(x1, x2) = 3x1x2 and c(xi) = xi

2, for i = 1, 2.

(ii) f(x1, x2) = 4x1x2 and c(xi) = xi, for i = 1, 2.

Provide a brief interpretation in each case.

 

Posted Date: 3/20/2013 2:57:32 AM | Location : United States







Related Discussions:- Find the nash equilibria, Assignment Help, Ask Question on Find the nash equilibria, Get Answer, Expert's Help, Find the nash equilibria Discussions

Write discussion on Find the nash equilibria
Your posts are moderated
Related Questions
what do we mean when we say export are exogenous and import are endogeneos?

the suitability of utilising a policy of tariffs and quotas given the case of perfect competition.

You operate your own small building company and have decided to bid on a government contract to build a pedestrian walkway in a national park during the coming winter. The walkway

Evaluate the impact of an aging population on state and local government expenditures. Suggest strategies that government should take in dealing with this situation. Justify your r

As is the case with the supply and demand function for a single business firm determining the equilibrium price and output for its product, the aggregate supply and aggregate deman

How does the Ricardo Viner diagram react when once price changes, effects on real wages, and labor allocation?

Ask question #Minimum 100 wordsThe following is the information from the national income accounts for a hypothetical country: GDP

Since anyone is able to obtain a license, not necessarily the low cost suppliers of archery lessons, and it is not necessarily the individuals with the highest willingness to pay w

explain the structure of the economy and its impact on the gdp of sountry.

#qDiscuss the functions of money Illustrate your answeruestion..