微观经济学第13B 寡头.ppt

* * * * * * * * * * * * The RD Game. This example really happened. You can flesh out the time line of developments in this industry at .mx/cricher/timeline.htm. * * Remind the students of John Nash’s claim in the movie “A Beautiful Mind” that he had challenged Adam Smith’s idea that self-interest always leads to the social interest. * * * Tell the story in the same way as for the prisoner’s dilemma. * * * * * The repeated prisoners’ dilemma and punishment The interesting fact about this extension of the prisoners’ dilemma is that punishment strategies can support a cooperative equilibrium, lead to maximum (monopoly) profit, and an inefficient allocation of resources. * * * Entry game The textbook uses the simplest possible example to illustrate the sequential entry game in a contestable market. It doesn’t explicitly explain the backward induction method of solving such a game, but it implicitly uses that method. You might want to be explicit. * * * * * * * * * * Game Theory Game theory is an entirely different approach to modeling a firm’s output and price decisions. It allows for the expected actions of all other firms in the market to be explicitly considered in the firm’s decision-making process. Game theory is a big step for the student and need a significant amount of time to develop. This chapter is designed to be flexible and provide you with many options on just how far to go. 1.We noted above that if you wish you can avoid game theory completely and stop at page 288. 2.You might want to introduce only the prisoner’s dilemma game. Pages 289–290 enable you to do that. 3.You might want to spend serious time applying the prisoner’s dilemma to a cartel game. Pages 291–295 enable you to do that. 4.You might want to extend the range of examples and apply the prisoner’s dilemma to a real-world research and development game. Pages 295–296 enable you to do that. 5.Finally, you might want to introduce repeated and sequential games and some of their applications and im