Microeconomics 2011 Chapter 15 微观经济 教学课件.ppt

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Nash Equilibrium in Duopolists’ Dilemma The Nash equilibrium is that both firms cheat. The quantity and price are those of a competitive market, and the firms make zero economic profit. Other Oligopoly Games Advertising and RD games are also prisoners’ dilemmas. An RD Game Procter Gamble and Kimberley Clark play an RD game in the market for disposable diapers. Oligopoly Games The payoff matrix for the Pampers Versus Huggies game. Oligopoly Games The Disappearing Invisible Hand In all the versions of the prisoners’ dilemma that we’ve examined, the players end up worse off than they would if they were able to cooperate. The pursuit of self-interest does not promote the social interest in these games. Oligopoly Games A Game of Chicken In the prisoners’ dilemma game, the Nash equilibrium is a dominant strategy equilibrium, by which we mean the best strategy for each player is independent of what the other player does. Not all games have such an equilibrium. One that doesn’t is the game of “chicken.” Oligopoly Games Payoff Matrix KC’s view of the world KC’s view of the world PG’s view of the world PG’s view of the world Equilibrium Repeated Games and Sequential Games A Repeated Duopoly Game If a game is played repeatedly, it is possible for duopolists to successfully collude and make a monopoly profit. If the players take turns and move sequentially (rather than simultaneously as in the prisoner’s dilemma), many outcomes are possible. In a repeated prisoners’ dilemma duopoly game, additional punishment strategies enable the firms to comply and achieve a cooperative equilibrium, in which the firms make and share the monopoly profit. One possible punishment strategy is a tit-for-tat strategy. A tit-for-tat strategy is one in which one player cooperates this period if the other player cooperated in the previous period but c