Slide 1Binomial Option Pricing Model (BOPM) References: Neftci, Chapter 11.6 Cuthbertson & Nitzsche, Chapter 8 1 Slide 2 Linear State Pricing A 3-month call option on…

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Slide 1 Rational Learning Leads to Nash Equilibrium Ehud Kalai and Ehud Lehrer Econometrica, Vol. 61 No. 5 (Sep 1993), 1019-1045 Presented by Vincent Mak ([email protected])[email protected]…

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PowerPoint Presentation Final Lecture Problem 2, Chapter 13 2 Exploring the problem Note that c, x yields the highest total payoff of 7 for each player. Is this a Nash equilibrium?…

Static Games of Complete Information . Games and best responses Bob is a florist One bunch of flowers sells for $10, but to sell 100 bunches market price should be zero Thus,…

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PowerPoint Presentation Final Lecture Problem 2, Chapter 13 2 Exploring the problem Note that c, x yields the highest total payoff of 7 for each player. Is this a Nash equilibrium?…