Education For All

Text size
  • Increase font size
  • Default font size
  • Decrease font size

Lectures (Video)

Course Home

Game Theory - Lecture 7

Get the Flash Player to view video.
Lecture 7 - Nash equilibrium: shopping, standing and voting on a line

We first consider the alternative "Bertrand" model of imperfect competition between two firms in which the firms set prices rather than setting quantities. Then we consider a richer model in which firms still set prices but in which the goods they produce are not identical. We model the firms as stores that are on either end of a long road or line. Customers live along this line. Then we return to models of strategic politics in which it is voters that are spread along a line. This time, however, we do not allow candidates to choose positions: they can only choose whether or not to enter the election. We play this "candidate-voter game" in the class, and we start to analyze both as a lesson about the notion of equilibrium and a lesson about politics.

Prof. Ben Polak
ECON 159 Game Theory, Fall 2007
(Yale University: Open Yale)
Date accessed: 2009-01-15
License: Creative Commons BY-NC-SA

Lecture Material

To view the lecture material accompanying this lecture in a new window, please click the button below. If necessary, use the vertical or horizontal scrollbar in the new window to view more of the material or you can resize the window.

To download the above lecture material use this link. (Right-click and select Save Target As or Save Link As.)

Supplementary lecture material is listed below.

1. Problem Set 3
2. Discussion of Linear-City Homework [PDF]



Chinese (Simplified) French German Italian Japanese Korean Portuguese Russian Spanish
More educational resources: