1. In the “symmetric” Cournot Game with two players, Player 1 chooses any nonnegative x; Player 2 chooses any nonnegative y, realizing unit cost 10 and unit price equal to 110-(x+y) and therefore the payoffs P1(x; y) = x(100- x-y);P2(x; y) = y(100- x-y).(i) Show that, for Player 1, any x > 50 is strictly dominated by x = 50.(ii) Show that, if x is less than or equal to 50, then for Player 2, any y < 25 is strictly dominated by y = 25.(iii) Find the smallest x' such that, if y is greater than or equal to 25, then for Player 1, any x > x’ is strictly dominated by x = x’:Does this game have an “iteratively dominant strategy equilibrium” ?2. (i) What is the Nash Equilibrium of the symmetric Cournot game with three players ?(ii) What is the maximum Player 1 would be willing to offer to Player 3 to “buy” Player 3 before the game is played ? (Explanation : If Player 1 buys Player 3 then the game becomes a two player symmetric Cournot game between Players 1 and 2.) Would Player 3 be willing to accept this amount ?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more