3. Consider the single object allocation problem discussed in the class. A single object needs to...
Game Theory Eco 405 Homework 2 Due February 20, 2020 1. Find all the Nash equilibria you can of the following game. LCDR T 0,1 4,2 1,1 3,1 M 3,3 0,6 1,2 -1,1 B 2.5 1.7 3.8 0.0 2. This question refers to a second-price, simultaneous bid auction with n > 1 bidders. Assume that the bidders' valuations are 1, ,... where > > ... > >0. Bidders simultaneously submit bids, and the winner is the one who has the...
Suppose you are a bidder in a first-price sealed-bid auction for a single object, where players submit bids simultaneously and the player who bid the highest wins the object and must pay his/her bid. Assume there are two other bidders, so this is a three-player game. You do not observe the valuations of the other bidders, but assume that you believe their valuations are identically and independently distributed according to a uniform distribution on the interval from 0 to 20....
Second Price sealed bid-auction: Assume n players are bidding in an auction in order to obtain an indivisible object. Denote by vi the value player i attaches to the object; if she obtains the object at the price p her payoff is vi −p. Assume that the players’ valuations of the object are all different and all positive; number the players 1 through n in such a way that v1 > v2 > · · · > vn > 0....
Four bidders participate in first price auction for a single object that is of the following value to them: V1 = 150, V2 = 100, V3 = 90, V4 = 80 The information above is known to all (i.e., each bidder knows not only his own valuation but also that of the other bidders). If two bidders or more bidders place the same bid, one of them is selected at random to be the winner. Select all that apply a. There's a Nash...
Four bidders participate in first price auction for a single object that is of the following value to them: V1 = 150, V2 = 100, V3 = 90, V4 = 80 The information above is known to all (i.e., each bidder knows not only his own valuation but also that of the other bidders). If two bidders or more bidders place the same bid, one of them is selected at random to be the winner. Select all that apply a. There's a Nash...
usion (24 points) Two firms are playing a repeated Bertrand game infinitely, each with the same marginal cost 100. The market demand function is P-400-Q. The firm who charges the lower price wins the whole market. When both firms charge the same price, each gets 1/2 of the total market. I. Coll A. (6 points) What price will they choose in the stage (only one period) Nash equilibrium? What price will they choose if in the stage game (only one...