ECON 3M03 Lecture Notes - Lecture 6: Weighted Arithmetic Mean, Symmetric Game, New England Road Marking System
8 Feb 2015
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Gardner chapter 4 - part 2 of 3. Outline: market niche game, computing mixed strategy ne, payoff dominance, mixed strategies ne of coordination games, correlated equilibrium, asymmetrical mixed strategy ne, game of chicken, always low prices. Firms 1 and 2 simultaneous decide whether to: enter (e) or stay out (s) of the market. Niche for only one firm: there are only enough consumers for one firm to operate profitably. Marketing strategists determine that if: if only one firm enters , if both enter, a firm that stays out breaks even meaning 0 profit firm earns in profits both lose . )y,x(j is the payoff that firm j gets when f1 uses strategy x and f2 uses y where. Clicker question: how many ne in pure strategies are there: a, 3 d. 4, 0. For this game, in the ne players use different strategies and get different payoffs: ne in pure strategies is not symmetric.
