ps8s Duopolies

3

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Unformatted text preview: the
proposed
law
regardless
of
what
the
other
congressman
 does.
 
 The
minimum
value
for
each
C
is
31
(assuming
we
are
only
using
 integers)
to
ensure
that
both
Congressmen
will
vote
for
the
proposed
 law.
 
 OR
 
 2.

Nash
equilibrium
without
dominant
strategy
requirement:
find
the
 solution
where
the
intersection
of
the
congressmen’s
responses
is
 where
they
both
vote
for
the
proposed
law,
regardless
of
whether
or
 not
it
will
be
the
dominant
strategy
for
both
congressmen
to
always
 vote
for
the
proposed
law.
 
 The
minimum
value
for
CF
is
31
(assuming
we
are
only
using
 integers),
and
the
minimum
value
for
CB
is
11.

Or
vice
versa.
 
 e. Explain
in
words
why
this
situation
is
“strategic.”

That
is,
why
does
Frank care
what
Be...
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This document was uploaded on 03/27/2014 for the course ECON 115 at Yale.

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