Pure coordination game, Game Theory

Assignment Help:

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. this can be conjointly referred to as a Pareto coordination game.

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

 


Related Discussions:- Pure coordination game

Rules of snake eyes game, Rules of Snake Eyes (small variation on game call...

Rules of Snake Eyes (small variation on game called Craps in USA) Player rolls two dice. On the first roll if the total of the dice is 2 (snake eyes): player wins and rece

Difference monopolistic competition and perfect competition, What is the di...

What is the different monopolistic competition and perfect competition? Monopolistic Competition versus Perfect Competition Into the long-run equilibrium of a monopolistical

Perfect nash equilibrium, Perfect Nash equilibrium Two students prepar...

Perfect Nash equilibrium Two students prepare their homework assignment together for a course. They both enjoy getting high grade for their assignment, but they dislike workin

Dutch auction, A type of initial worth auction during which a "clock" initi...

A type of initial worth auction during which a "clock" initially indicates a worth for the item for sale substantially beyond any bidder is probably going to pay. Then, the clock g

Game playing in class-equilibrium payoffs are (4, Equilibrium payoffs are (...

Equilibrium payoffs are (4, 5). Player A’s equilibrium strategy is “S then S if n and then N if n again.” Player B’s equilibrium strategy is “n if S and then n if S again and then

Zero restriction, A priori knowledge usually enables us to decide that some...

A priori knowledge usually enables us to decide that some coefficients must be zero in the particular equation, while they assume non-zero values in other equations of the system.

Imperfect data, A sequential game is one among imperfect data if a player d...

A sequential game is one among imperfect data if a player doesn't grasp precisely what actions different players took up to that time. Technically, there exists a minimum of one da

Strategic kind, The strategic (or normal) kind may be a matrix illustration...

The strategic (or normal) kind may be a matrix illustration of a simultaneous game. for 2 players, one is that the "row" player, and also the different, the "column" player. every

equilibrium refinement, An equilibrium refinement provides how of choosing...

An equilibrium refinement provides how of choosing one or many equilibria from among several in a very game. several games might contain many Nash equilibria, and therefore supply

Find the quantities that firm is selling – equilibrium price, 1. Two firms,...

1. Two firms, producing an identical good, engage in price competition. The cost functions are c 1 (y 1 ) = 1:17y 1 and c 2 (y 2 ) = 1:19y 2 , correspondingly. The demand functi

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd