Question
Consider the following simultaneous move game with material payoffs as shown below: where X>0, C>0. (i) Suppose 2X (ii) Suppose 2X>C. Show that (Grab, Grab)
Consider the following simultaneous move game with material payoffs as shown below:
where X>0, C>0.
(i) Suppose 2X (ii) Suppose 2X>C. Show that (Grab, Grab) is a fairness equilibrium. For which values of X, is (Share, Share) also a fairness equilibrium? Are your computations different from those for (i) above, and if so, why?
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Power And Plenty Trade, War, And The World Economy In The Second Millennium
Authors: R Findlay, Ronald Findlay
1st Edition
0691143277, 9780691143279
