BIOCH498 Lecture Notes - Lecture 5: Bachelor Of Business Administration, Nash Equilibrium, Joe S. Bain
13 Jun 2015
School
Department
Course
Professor
Document Summary
November 20, 2014: game theory, repeated games, cooperation or competition, measures of concentration, sequential games. De nition: a nash equilibrium is one in which each player"s best strategy is to maintain its present behaviours given the present behaviour of the other player. Nash equilibrium is not the worst case scenario in most of other games (except for the prisoner"s dilemma). These two people like to do social activities together, but their tastes are different. Whatever they do, they like to do things together. Also, note how the nash equilibriums are the best outcomes on the table above. Arguments between yale and the university of chicago. Cheat is to ght each other; comply is to cooperate with each other. When they cheat, they put up lower prices; when they comply, they assume monopoly and put up a higher price. University of chicago - no regulation; cartels are not stable and thus don"tt let companies sign cartel agreements.
