Abstract

This chapter discusses the computation of the Nash equilibrium for bimatrix games. It begins by considering a different version of the battle of the sexes game introduced in Chapter 9, in which action 1 corresponds to going to the baby shower and action 2 to the football game. In this new version no one really wants to go to the football game alone (cost of 3), but going to the baby shower alone is a little better (cost of 0). After finding the mixed Nash equilibrium for this case, the chapter describes the computation of a completely mixed Nash equilibrium and the numerical computation of a mixed Nash equilibrium. It concludes with a practice exercise and the corresponding solution, along with an additional exercise.

Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call