Economic and Game Theory
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I try to calculate the nash Equilibria for a relatively complex investment game. There are four players and each player has to decide how much she wants to invest into a and b. Alle player start with the same endowment E = 100. a and b are continuous variables with (a+b) >= 100. (side condition)
Please see the attached file for the payoff condition.
Do I have to start with a Lagrange Function? With respect to which variables do I have to differentiate? (a1, a2, a3, a4?) The term gets really really ugly.
THX, a lot!
(Sorry, double post!)