You and a friend are in an Italian restaurant. The owner makes the following offer to...
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You and a friend are in an Italian restaurant. The owner makes the following offer to the two of you. Each of you must simultaneously announce how many slices of pizza you would like; that is, each player à € 1, 2 should say the number of slices of pizza, 3; that he or she would like. Number 8; should satisfy 0 ≤ 3; <8, and should be a whole number. If 81 +82 < 8 then each of you gets your demand. If 8₁ +82 > 8, then neither of you gets anything. Assume that each of you cares only about how much pizza you individually consume, and the more pizza you get the better. Is the outcome where one player demands 6 and the other player demands 1, a Nash equilibrium? You and a friend are in an Italian restaurant. The owner makes the following offer to the two of you. Each of you must simultaneously announce how many slices of pizza you would like; that is, each player à € 1, 2 should say the number of slices of pizza, 3; that he or she would like. Number 8; should satisfy 0 ≤ 3; <8, and should be a whole number. If 81 +82 < 8 then each of you gets your demand. If 8₁ +82 > 8, then neither of you gets anything. Assume that each of you cares only about how much pizza you individually consume, and the more pizza you get the better. Is the outcome where one player demands 6 and the other player demands 1, a Nash equilibrium?
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Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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