Economic and Game Theory
|"Inside every small problem is a large problem struggling to get out."|
Thread and Full Text View
For this particular question;
Player 1 chooses strategy x1 from [-1,1] and Player 2 chooses strategy x2 from [-1,1]. Player 1 utility function is x1^2/2 + x1x2. Player 2 utility function is x2^2/2 -x1x2. Find the best response function of each player (to pure strategies). Is there a nash equilibrium?
I really would appreciate explanations so I can get around my head and apply this to the rest of the questions on sets from this textbook. Please use hide/show because it is interesting. Please be detailed as you can. Thank you. [Manage messages]