ECO326H5 Study Guide - Quiz Guide: Nash Equilibrium, Pus, Bertrand Competition
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Eco 326: problem set 1: consider the course enrollment example we discussed in the class. Alice and bob, who decide whether to enroll course in mississauga campus or st. george cam- pus. Alice lives in the middle point of two campus and she only cares about the commute time. So alice is indi erent between two campuses no matter what bob does. Bob loves alice so much and his priority is to go to same campus with alice. 40,20: find the nash equilibrium of the following game. 1,6: (exercise 33. 1 on textbook) each of n people chooses whether to contribute a xed amount toward the provision of a public good. The good is provided if and only if at least k people contribute, where 2 k n; if it is not provided, contributions are not refunded. Formulate this situation as a strategic game and nd its nash equilibira. (hint: is there a. One in which fewer than k people contribute?)
