财政系期末复习大三博弈论lecture 6_application of nash equilibrium.pdfVIP

Game Theory 1 Spring 2015 1 Lecture 6 Applications of Nash Equilibrium 2 Readings • Watson: Strategy_ An introduction to game theory rd rd – 1 ed: Ch10 pp.93-101; 3 ed: Ch10 pp.113- 131. 2 • Exercises: 1(a)-(c), 2 3 Outline • Cournot’s Model of Oligopoly • Bertrand’s Model of Oligopoly 2 • The Problem of the Commons • Hotelling’s Model of Electoral Competition • Candidate oter Model 4 Cournot’s Model of Oligopoly Duopoly with constant unit cost and linear inverse demand function Players ：two firms Strategies：Each f ’s set of strategies is the set of its possible qu tities （nonnegative numbers ）of identical products Payoffs ：Each firm’s payoffs are represented by its profit. 5 Basic Assumptions Constant unit cost ： C i  cqi for all qi Linear erse demand function ：  f Q  P  , Q qi 0 Q   Assu 6