Re: DSE 2015 answer

Posted by Mike on May 24, 2016; 8:58am
URL: http://discussion-forum.276.s1.nabble.com/DSE-2015-answer-tp7600806p7601024.html

For 28, you can proceed without drawing the graph. Remember in the link sir has mentioned about dominant strategy. Try to think like that.  
B.R1 ={ r1>= 50   if r2>=50
               r1<=50   if r2 < 50
Notice that r1 = 50 is the dominant strategy for player 1 irrespective of what the other player is doinng.
BR2 remains the same as in 27 . so r2 = 60 remains the dominant strategy for player 2 irrespective of what the other player is doing.
So (50,60) is an equilibrium and the good is provided. And each agent gets a utility of 10
 Remember that any dominant strategy equilibrium is a nash but not all Nash equilibrium's are a result of dominant strategy.
Now my only doubt is why there's a deficit