CAS EC 101 Lecture 21: Lecture 21 - Strategic Interaction and Game Theory

• School: Boston University
• Department: Economics
• Course: CAS EC 101
• Professor: Michael Manove

Document Summary

Cq: what types of firms are least likely to engage in costly rent-seeking in order to protect their market positions: competitive firms b) small business c) industrial firms d) monopolies. In perfectly competitive markets (like the market for corn), firms do not compete with other firms on an individual basis. Criminal case has prosecutor versus defense: political campaigns. Cq: in which of the following cases is strategic interaction least important: duopoly b) oligopoly c) perfect competition d) political campaigns. Answer: c (because just looking at the price, not actions of competitor) The battle of the sexes is a game-theory model of coordination in. To keep the game simple, only two players are modeled. Vanesa wants to go to a football match f, but miguel wants to go to the business (or in personal relationships). opera r. they both do r, then vanesa gets 1 and miguel gets 2. But if they do different things, then both get 0.