Monday, November 8, 2010

Duopoly

Classic example of why competition is beneficial to customers.

A pair (or tuple ) of strategies is a solution to a game only if it is a nash equilibrium.

What is a game doesnt have a nash equilibrium...
Not possible. John nash proved that every game has atleast a mixed nash equilibrium

Fallacy of twins; Its just prisoners dilemma with two identical twins playing the game. So its only diagonal in the payoff matrix that is applicable. So dove dove will strongly dominate hawk hawk (where hawk hawk is the optimal strategy if players werent identical twins