CAS EC 101 Lecture Notes - Lecture 8: Nash Equilibrium, Concentration Ratio, Game Players

• School: Boston University
• Department: Economics
• Course: CAS EC 101
• Professor: Neil Watson

Document Summary

Example: coke and pepsi: strategies for each player. Example: spend a little( small ) or a lot( large ) on advertising. Both are considering whether or not to enter the airplane market. However, the world market for airplanes can only support one profitable entrant. If both booing and airboos enter the airplane market, they will each. If one firm enters the airplane market, and the other does not, the suffer a loss of million. entrant earns a profit of million, while the other firm earns a profit of 0. If neither firm enters the market, both firms earn a profit of 0. Discussion class: many firms so many that one can affect market price, homogenous goods different firms sell the same product. 24--horizontal intercept"s extreme value: vertical intercept slope = the negative of the wage. Slope = -(px/py: changes in the wage. Aog: from the labor supply of individual workers to.