6. Nash equilibrium: dating and Cournot
This lecture formally defines and applies the Nash Equilibrium concept to classic coordination games, including the Battle of the Sexes. It then presents a rigorous mathematical analysis of the Cournot duopoly model, examining firm competition and welfare implications.
Game Theory (ECON 159)
We apply the notion of Nash Equilibrium, first, to some more coordination games; in particular, the Battle of the Sexes. Then we analyze the classic Cournot model of imperfect competition between firms. We consider the difficulties in colluding in such settings, and we discuss the welfare consequences of the Cournot equilibrium as compared to monopoly and perfect competition.
5. Nash equilibrium: bad fashion and bank runs
Next · Lecture 77. Nash equilibrium: shopping, standing and voting on a line