Mixed strategy, Managerial Economics

Ingrid and Jeff would like to use Saturday night together but have dissimilar tastes in entertainment. Jeff would like to go to the opera but Ingrid would prefer to see soccer. As the following payoff matrix shows, Jeff would most favour to go to the opera with Ingrid, but prefers watching soccer with Ingrid to going to the opera alone, and likewise for Ingrid. 

2141_aa.png

Verify the Nash equilibria of this game, suppose that Ingrid and Jeff do not randomize over actions.

Strategies in which a player makes a specific choice or takes a specific action will not always result in a Nash equilibrium. In some cases, players can make a random choice among two or more possible actions, based on a set of chosen probabilities.  A strategy like this is called a mixed strategy.

 

 

Posted Date: 3/26/2013 4:03:08 AM | Location : United States







Related Discussions:- Mixed strategy, Assignment Help, Ask Question on Mixed strategy, Get Answer, Expert's Help, Mixed strategy Discussions

Write discussion on Mixed strategy
Your posts are moderated
Related Questions
Topic:  Company Case Study and Industry Analysis   Instruction:  1) choose a company;                     2) recognize the market industry type;                     3)

Q. Can you explain about Demand Forecasting? Demand forecasting involves forecasting and estimating the quantity of a service or product that consumers will buy in future. It a

To what extent has the IMF achieved its objectives? The objective of achieving full convertibility of currencies has not been achieved.  In the first place countries impose re

price output determination under monopoly explain

CLASSIFICATION OF TAXES Taxes can be classified on the basis of: a.     Impact of the taxes It means on whom the tax is imposed.   On the other hand, incidence of the

wHAT IS THE SIGNIFICANCE OF EXPECTATION ELASTICITY ?

Consumer Demand is how much of something that consumers are wanting. A company requires to know the consumer demand so they know how much of a product to build.

Ask question #MinimumElectron Control, Inc., sells voltage regulators to other manufacturers, who then customize and distribute the products to quality assurance labs for their sen

Using the same simple macro model we developed in Module 2: a.  Show what will happen to national income (GDP) if the administration implements another $100 (billion) stimulus s

Illustrate the concept of present value. The Concept of Present Value: While someone borrows money for a year, there the interest rate is the price, computed as a percent