ECON
Lecture6

# Lecture6 - Homework Due Friday 4:15PM Hand homework in to...

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1/27/2009 1 Homework Due Friday 4:15PM Hand homework in to your GSI during discussion section OR Turn in homework to the specially marked box outside Lorch Hall 109 by 4:15PM Be Reading Chapter 5 A Note About Equilibria Some games – Get feel for what an equilibrium might be Show that if everyone does it, nobody has an incentive to change Show everything else isn’t equilibrium: for each other possible strategy profile, somebody has an incentive to change Others games – when you’re clueless Calculate best responses Equilibria occur where best responses cross Continuous Strategy Sets Our examples have involved discrete action sets with a small number of possible actions Even chess and go are discrete We now consider strategy sets that are We now consider strategy sets that are continuous: Why? So we can use CALCULUS Players 1 & 2 take actions 0 3 e π Finding Nash Equilibria In general, NE occur where “best response curves” cross Finding Nash Equilibria Example – A Synergistic Relationship

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• Fall '07
• Emre
• Game Theory, best response, Synergistic Relationship

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