Pareto coordination game, Game Theory

Scenario

Two corporations should simultaneously elect a technology to use for his or her compatible merchandise. If the corporations adopt totally different standards, few sales result. a {standard|a typical} standard ends up in higher sales. One technology is considerably most well-liked by customers over the opposite. Thus, if the businesses will standardize on the well-liked technology, every obtains maximal profits.

Description

There are 2 pure strategy equilibria. Each corporations like identical equilibrium that Pareto dominates the opposite. A Mixed strategy equilibrium conjointly exists.

Example



Firm 2



good

bad

Firm 1

good

5,5

0,0

bad

0,0

3,3

General Form



Player 2



L

R

Player 1

U

a,w

b,x

D

c,y

d,z

Where the following relations hold:
a>d>b; a>d>c 
w>z>y; w>z>x

 

Posted Date: 7/21/2012 4:40:00 AM | Location : United States







Related Discussions:- Pareto coordination game, Assignment Help, Ask Question on Pareto coordination game, Get Answer, Expert's Help, Pareto coordination game Discussions

Write discussion on Pareto coordination game
Your posts are moderated
Related Questions
A game frequently displayed in tv police dramas. 2 partners in crime are separated into separate rooms at the police station and given an identical deal. If one implicates the oppo

1. The town of Sunnydale, CA is inhabited by two vampires, Spike and Anya. Each night Spike and Anya independently hunt for food, which each one finds with probability 1/2 . Becaus

Matches or different objects are organized in 2 or a lot of piles. Players alternate removing some or all of the matches from anyone pile. The player to get rid of the last match w

Rollback equilibrium       (b) In the rollback equilibrium, A and B vote For while C and D vote Against; this leads to payoffs of (3, 4, 3, 4). The complete equil

Identification is closely related to the estimation of the model. If an equation is identified, its coefficient can, in general, be statistically estimated. In particula

Identification is a problem of model formultion, rather than inf nlnde! estimation or appraisal. We say a model is identified if it is in a unique statistical form, enabling unique

What is the Iterated Dominant Strategy Equilibrium (IDSE) and associated pay-offs? Type your answer in the following form: (c,B) , (6, 4) if you think the outcome is

Consider two quantity-setting firms that produce a homogeneous good. The inverse demand function for the good is p = A - (q 1 +q 2 ). Both firms have a cost function C = q 2 (a

What do you study about the saving, investment spending and financial system? Savings, Investment Spending, and the Financial System: 1. The correlation between savings and

Named when Vilfredo Pareto, Pareto optimality may be alive of potency. An outcome of a game is Pareto optimal if there's no different outcome that produces each player a minimum of