Lecture 7 - Nash equilibrium: shopping, standing and voting on a line
recorded by: Yale University
published: Nov. 15, 2010, recorded: September 2007, views: 3447
released under terms of: Creative Commons Attribution No Derivatives (CC-BY-ND)
Report a problem or upload filesIf you have found a problem with this lecture or would like to send us extra material, articles, exercises, etc., please use our ticket system to describe your request and upload the data.
Enter your e-mail into the 'Cc' field, and we will keep you updated with your request's status.
We first consider the alternative "Bertrand" model of imperfect competition between two firms in which the firms set prices rather than setting quantities. Then we consider a richer model in which firms still set prices but in which the goods they produce are not identical. We model the firms as stores that are on either end of a long road or line. Customers live along this line. Then we return to models of strategic politics in which it is voters that are spread along a line. This time, however, we do not allow candidates to choose positions: they can only choose whether or not to enter the election. We play this "candidate-voter game" in the class, and we start to analyze both as a lesson about the notion of equilibrium and a lesson about politics.
Strategies and Games: Theory And Practice. (Dutta): Chapters 6-7
Strategy: An Introduction to Game Theory. (Watson): Chapter 10
Thinking Strategically. (Dixit and Nalebuff): Chapter 9, Section 5
Link this pageWould you like to put a link to this lecture on your homepage?
Go ahead! Copy the HTML snippet !