Index

Module 02 · Game TheoryMoves in Time

Nash on a Number Line

Dominant Strategies and Nash Equilibrium
Dominant Strategies and Nash Equilibrium · Open board

The board opens on Cournot’s two springs and then solves small grids. This lesson goes back to the springs and solves them properly, where each player’s move is not Up or Down but any number on a dial.

Before you start. From Dominant Strategies & Nash Equilibrium you have the Nash equilibrium: a set of choices where nobody gains by changing only their own move, found by marking each player’s best reply to every move of the other. That lesson only ever had two or three moves per player, so a grid held the whole game. Here a player can choose any amount at all, and the grid becomes a line.

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Lab

Two sellers share a market. Does competition between them push the price all the way down to cost?

Switch between Sellers choose amounts and Sellers post prices, then drag Sellers in the market up to 20.

Open The price war →

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