Games Flashcards
(9 cards)
Demand Game
Multiple players simultaneously set their demand/prices knowing their payoff;
Cournot Game
firms compete by choosing the quantity of a good to produce, rather than the price.
Entry Game
Potential entrant decides whether to enter a market, and an incumbent firm may deter entry through pricing or capacity
Bertrand Game
Firms compete by setting prices and the firm offering the lowest price capture the entire market
Assumptions of Bertrand Game
- Each firm chooses price (cannot be negative)
- Single consumer chooses firm to purchase from (refers lowest price)
Tennis Service Game
A strategic game between server and receiver where each chooses shot direction to maximize win probability
Detective Game
A game of imperfect information where a detective tries to uncover a suspect’s strategy or hidden action
First-Price Auction
Bidders submit sealed bids, and the highest bidder wins and pays their bid
Second-Price Auction
Bidders submit sealed bids, and the highest bidder wins but pays the second-highest bid
