Nash equilibrium

cartel meber decides to cheat, more goods are available at lower prices. Hence the industry will become more saturated which will lead to a price fall towards the equilibrium price in a competitive market. This is depicted in graph 2 by the difference between P4 and P3. In consequence the market “moves toward the competitive equilibrium”. (Bade, R., & Parkin, M., 2009) To better explain the consequences of different price strategies of each player in a cartel we refer to the prisoner’s dilemma…

If one seller is higher on the beach then the other she would control the larger market share, the only way for the other seller to remain competitive is to hold the center of the breach. This mentality of one upmanship is quantified by the Nash Equilibrium, a theory where each seller makes the best decision based off of the other seller’s actions (S.K., 2016). Essentially, working each other into a stalemate as they jostle for the upper hand, if one seller movers her cart, then the other seller…

cooperate, which liberal institutionalism claims because they would gain more; however, from either state's individual perspective it would be best for them to defect because they could always gain power by defecting. One counterargument would be nash equilibrium, which is when neither state has an incentive to unilaterally change their behavior given what the other state is doing. As illustrated in the prisoner’s’ dilemma, states will always want to do what is in their best interest because…

One of the first topics discussed at the beginning of the course was risk aversion, which examined the way individuals make decisions when there is a possibility that one of the potential outcomes that can be achieved is undesirable when compared to a perceived better alternative. As explained from during lectures and readings, and illustrated by actual experiments, individuals are more likely to be risk averse or risk neutral than risk loving. While the concept of risk aversion influences…

In this essay, I will be evaluating an argument from both moral skepticism and ethical objectivism. For clarification purposes, I will define some of the terms which I will be using throughout this essay. The following definitions in this paragraph are taken from the third edition of Shafer-Landau’s ‘The Fundamental of Ethics’ (2015). Ethical objectivism is the view that there exists at least one objective moral standard, and that some moral claims are objectively true. In contrast, moral…

Throughout this essay I will be discussing the differences of ‘Recessions’ and ‘Depressions’. I will also look at any similarities and/or differences in the factors that led up to ‘The Great Depression’ in the 1930s and ‘The Great Recession’ more recently in 2007 – 2010. The last subject I will cover is ‘Secular Stagnation’. I will define and discuss whether the western economies have entered into ‘Secular Stagnation’ if I believe they have I will then also look into ways the crisis could be…

Case 1: Multi-Queue, Multi-Server Sellers will fix a single price for all of its queue. Case 2: The seller will include a time-cost based price discrimination by charging a separate price in each queue. Using the Mixed Strategy Nash Equilibrium (MSNE), the results from all four treatments (Uniform, Discriminatorily, Random and Patient) are as follows: Aggregate Treatment effects between Discriminatory and Uniform  Price based express checkout lowers the market prices and reduces the…

An Economy is “A system established in a country or region to handle the production and consumption of goods and services and the supply of money”. The purpose of establishing an economy is to ensure that all scarce resources are used efficiently to maximise on the welfare of individuals, through providing tangible goods and intangible services, however opinions differ on what course of action should be implemented. The three commonly know systems are ‘command’, ‘free market & ‘mixed’, however…

When a colleague asks how we are first thing in the morning, our answer is frequently a lie; regardless of how we feel that day and what is going on our lives, we automatically present a picture of wellness and happiness. This is just the first of many lies we will tell throughout our day, assuming we have not already lied to those we may have encountered in our household. Indeed, lies permeate our lives, and the average person [insert statistics here]. Why do we do this? What is the point of…

Gerontology is the scientific study of old age, the process of aging, and the particular problems of old people. The field of gerontology is very broad, and there are many subfields. Geriatrics focuses strictly on the medical conditions and disease of the aging, gerontology is a multidisciplinary study that incorporates biology, psychology and sociology. Because gerontology deals with multi-faceted aspects of aging. according to" Michelle Hall Between 2000 and 2030, the older population --…