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
Nineteenth century French economist attributed with the introduction of the theory of profit maximizing producers. In his masterpiece, The Recherches, published in 1838, Cournot pr

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

This is Case of Competitive Games. Player 2 L R Player 1 L (60,40) (70,30) R (65,35) (60,40) Are either have dominant st

A market mechanism in which a service, objects, or set of objects, is swapped on the basis of bids submitted by member. Auctions offer a precise set of rules that will rule the pur


One of the foremost common assumptions created in game theory (along with common information of rationality). In its mildest kind, rationality implies that each player is motivated

A heuristic is an aid to learning, casually brought up as a rule of thumb. Formally, a heuristic may be a mechanism capable of altering its internal model of the surroundings in re

The Cournot adjustment model, initial proposed by Augustin Cournot within the context of a duopoly, has players choose methods sequentially. In every amount, a firm selects the act

Ship, Captain and Crew (sometimes called Ship, Captain and Mate) was a popular bar game played for drinks with five dice and throwing cup. Each player gets three throws. He has to

Eighteenth century British mathematician who recognized a method for probabilistic mathematical inference. His Bayes Theorem, published posthumously, treats probability as a logic.