ECON 159 - Lecture 6 - Nash Equilibrium: Dating and Cournot

Lecture 6 - Nash Equilibrium: Dating and Cournot

Overview

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.

Resources

Assignment

Strategies and Games: Theory And Practice. (Dutta): Chapters 6-7

Strategy: An Introduction to Game Theory. (Watson): Chapter 10

Thinking Strategically. (Dixit and Nalebuff): Chapter 9, Section 5

Course Media

Transcript

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Audio

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