Slide 1 Managerial Economics & Business Strategy Chapter 10 Game Theory: Inside Oligopoly Slide 2 Introduction: Prisoner’s Dilemma Ginger and Rocky rob a 7-eleven.…

Slide 1 1 Economics & Evolution Slide 2 2 Cournot Game 2 players Each chooses quantity q i ≥ 0 Player i’s payoff is: q i (1- q i –q j ) Inverse demand (price) No…

* 13.4 Product Differentiation When firms produce similar but differentiated products, they can be differentiated in two ways: Vertical Differentiation – consumers consider…

Price Competition Introduction In a wide variety of markets firms compete in prices Internet access Restaurants Consultants Financial services With monopoly setting price…

BEE3049 Behaviour, Decisions and Markets Miguel A. Fonseca Recap Last week we looked at how individuals process new information to update their beliefs about a given process…

The Public Goods Environment n agents 1 private good x, 1 public good y Endowed with private good only (gi) Preferences: ui(xi,y)=vi(y)+xi Linear technology () Mechanisms:…

Slide 1 1 3.4. Bertrand Model Matilde Machado Slide 2 Matilde Machado - Industrial Economics3.4. Bertrand Model2 In Cournot, firms decide how much to produce and the market…

Slide 1Game Theory: Inside Oligopoly Slide 2 Introduction Behavior of competitors, or impact of own actions, cannot be ignored in oligopoly Managers maximize profit or market…

Introduction to Bayesian Games Surprises About Information Bayes’ Rule Application: Juries Introduction to Game Theory Lecture 7: Bayesian Games Haifeng Huang University…

Slide 1Other Issues in Game Theory BusinessNegotiationsContracts Slide 2 Dominant Strategy Regardless of whether FIRM 2 chooses strategy A, B, or C, FIRM 1 is better off…