Stability and the chain store paradox

Article Abstract:

The Chain Store Paradox, as proposed by Selten and elaborated on by Kreps and Wilson, is discussed. It describes the existence of a situation of perfect equilibrium that results when the monopolist remains complacent to the entry of new competitors. This hypothetical equilibrium situation, however, is contrary to a result that would be obtained intuitively and from the standpoint of rational economic thinking.

Competition (Economics), Monopolies

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Information in conflicts

Article Abstract:

A two-player contest for a common prize is considered, where the value of the prize is uncertain. When one player knows the value of the prize and the other player knows only about its prior distribution, then the uninformed agent is more likely to win the prize than the informed agent.

Auctions, Conflict

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A global Newton method to compute Nash equilibria

Article Abstract:

Using Kohlberg and Mertens' structure theorem, homotopy method of Eaves can be represented as a dynamical system and implemented by Smale's global Newton method. These two methods are combined to compute Nash equilibria of finite games.

Homotopy theory

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