Strategy nash equilibrium, Basic Statistics

Consider a population of consumers uniformly distributed along the interval from left-hand (x = 0) to right-hand (x=1). The mass of consumers is 1. There are two firms (F1 and F2) that supply homogrnouse goods. The objective of each firm is to maximize its profit. The price is regulated at p. each of the riems simultaneously chooses its location (i.e. a point on the line between x=0 and x=1). The consumers observe the firm's choice, and then each consumer buys from the firm whose location is closest to the consumer's position on the line. If the two firms locate at a same point, they equally split the consumer demand.

For example, if Fi locates as in the following figure, the left-hand consumers buy from F1 and the right-hand consumers buy from F2.

1. In this case, what is a pure-strategy Nash equilibrium? You must explain how to derive it.

2. When there are three firms, no pure-strategy Nash equilibrium exists. Prove it.

3. When there are four firms, what is a pure-strategy Nash equilibrium? You must explain how to derive it.

1137_Derive the pure strategy Nash equilibrium3.png

Posted Date: 3/20/2013 3:26:06 AM | Location : United States







Related Discussions:- Strategy nash equilibrium, Assignment Help, Ask Question on Strategy nash equilibrium, Get Answer, Expert's Help, Strategy nash equilibrium Discussions

Write discussion on Strategy nash equilibrium
Your posts are moderated
Related Questions
How to calculate manually Cronbach alpha

what is the relationship of cost accounting to financial and management accounting?

how do I find the cost of inventory?

The correlation coefficient can take values from -1 to 1. If the correlation coefficient lies in the range (-1,0) then we say that the correlation is negative, on the other hand if

how p(x)=hyper geometric distribution is probability mass function

what are the procedure of job order costing


The average cost of a gallon of unleaded gasoline in Greater Cincinnati was reported to be $2.41 (The Cincinnati Enquirer, February 3, 2006). During periods of rapidly changing pri

Present the survey methodology which is going to be used by describing primary and secondary data collection methods, population, sampling frame and sampling method/s, sample size

#qa national poll of 1836 respondents indicated that 36% support the NDP. Test whether this is sufficient evidence to show that the NDP support has increased since the election. Us