Hands down the best game theory content on the internet. Thanks a million for this!! - If anyone hasn't checked out his book, I guarantee you won't find game theory more simplified anywhere.
The class material didn't help me to understand this concept, neither did my professor, other youtube videos or any other source of information. You sir, are a legend! Thank you!
Please solve: A variant of this example was first introduced by Augustin Cournot (1838). Two identical firms, players 1 and 2, produce some good. Assume that there are no fixed costs of production, and let the variable cost to each firm i of producing quantity qi ≥ 0 be given by the cost function, ci (qi ) = q 2 i for i ∈ {1, 2}. Demand is given by the function q = 100 − p, where q = q1 + q2 .
Looking forward to it! Sorry just a question, let's say there's a capacity constraint of F=20 and the NE without the capacity constraint is (24,18). In the case of F=20, do I consider firm 1 to produce 20 instead of 24 and plug it in firm 2's best response function to find the new NE with the constraint?
@@rebekahfrogoso5326 That will probably get you to the right answer, but you should double check that firm 1 wants to produce 20 given that firm 2 is playing its best response to firm 1 producing 20.
@@PunmasterSTP If their comment was true and they were starting with no understanding of game theory then they almost certainly failed their qual exam.
@@brandonwalker6069 That was my hunch, but I was still curious. I've made something of a habit of replying to old comments that mention an upcoming (for the time) event. It's led to some cool conversations, and hopefully it drives up engagement on the videos.
0:57: In *Stackelberg* competition we have sequential moves.
Hands down the best game theory content on the internet. Thanks a million for this!! - If anyone hasn't checked out his book, I guarantee you won't find game theory more simplified anywhere.
The class material didn't help me to understand this concept, neither did my professor, other youtube videos or any other source of information. You sir, are a legend! Thank you!
Neither did Business degree from University, Economicst = empty-headed.
Please solve: A variant of this example was first introduced by Augustin Cournot (1838). Two
identical firms, players 1 and 2, produce some good. Assume that there are no fixed
costs of production, and let the variable cost to each firm i of producing quantity
qi ≥ 0 be given by the cost function, ci
(qi
) = q
2
i
for i ∈ {1, 2}. Demand is given by
the function q = 100 − p, where q = q1 + q2
.
This also means q_1 = (a - 2c_1 + c_2) / 3
damn bro... I wish I had this for my exam last month :(
Good video. It would be great if you could do some actual working examples
Looking forward to this new series thanks for taking the time to make these
Thank you for this, very helpful supplement to lectures!
Cournot? More like “Cool, yo!”, because I think this stuff is really neat. Thanks for making all these videos!
Amazing, thank you
Thank you! You are the best !
Thank you for this! Can you also go over the Bertrand’s Model please?
Yep, plan is to do that after Stackelberg.
Looking forward to it! Sorry just a question, let's say there's a capacity constraint of F=20 and the NE without the capacity constraint is (24,18). In the case of F=20, do I consider firm 1 to produce 20 instead of 24 and plug it in firm 2's best response function to find the new NE with the constraint?
@@rebekahfrogoso5326 That will probably get you to the right answer, but you should double check that firm 1 wants to produce 20 given that firm 2 is playing its best response to firm 1 producing 20.
What if they don't know each other's marginal costs?
Is it possible to understand all game theories exist in microeconomics in 4 days I'm going to lose my master degree if I dont pass it
Dang it sounds like things came down to the wire, and I hope they went well. How did things turn out?
@@PunmasterSTP If their comment was true and they were starting with no understanding of game theory then they almost certainly failed their qual exam.
@@brandonwalker6069 That was my hunch, but I was still curious. I've made something of a habit of replying to old comments that mention an upcoming (for the time) event. It's led to some cool conversations, and hopefully it drives up engagement on the videos.