Nash equilibrium, Microeconomics

Assignment Help:

Think of the Golden Ball game. Now player 1 is money-minded and jealous, and player 2 is very good-hearted, so the payoff matrix is follows:

                               Player 2

SP                    ST

Player 1           SP                    5, 5                  -2, -1

                       ST                    10, -1               0, -1

a. Solve for all the mixed Nash equilibrium if any.

b. Among the four outcomes here, which outcome(s) are Pareto optimal (in the sense that you cannot find another outcome that makes no player worse off but some player better-off)?


Related Discussions:- Nash equilibrium

Determine the setting a minimum wage for under-eighteen, Show the possible ...

Show the possible outcome of setting a minimum wage for under-eighteens. Explaining and illustration of minimum wage - clearly set above market equilibrium outlining res

Help, A monopolist faces the inverse demand for its output: p = 30 – Q The ...

A monopolist faces the inverse demand for its output: p = 30 – Q The monopolist also has a constant marginal and average cost of $4/unit. The government is seeking ways to collect

What do you meant by private equity, Q. What do you meant by Private Equity...

Q. What do you meant by Private Equity? Private Equity: A form of business in which company's entire equity base is owned by one or a small group of individual investors. Under

Explain and illustrate, explain and illustrate the changing demand for big ...

explain and illustrate the changing demand for big mac using indefference curve and budget line

Non-existence of objective probability distributions, Non-existence of Obje...

Non-existence of Objective Probability Distributions :   Let us see why expectations are volatile in nature? According to Keynes (1936, pp. 149): "Our knowledge of the fact

Labor Economics, Sally recently finished her full-time training and receive...

Sally recently finished her full-time training and received certification as a nurse’s aid at the end of August. She sent out applications to prospective employers during the last

Define debt, Q. Define Debt? Debt:Total amount of money owed by a compa...

Q. Define Debt? Debt:Total amount of money owed by a company, individual or other organization to banks or other lenders is their debt. It represents accumulated total of past

What does the basic neoclassical model assume about market, What does the b...

What does the basic neoclassical, or traditional, model of economics assume about markets? It supposes that markets are perfectly competitive and smoothly functioning, and thos

Public expenditure trends, Public Expenditure Trends: The expenditure ...

Public Expenditure Trends: The expenditure pattern of the Government sector has been generally guided by the concern about the role of the State in the economy, both as invest

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