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This 1 page Class Notes was uploaded by Trevor on Monday June 8, 2015. The Class Notes belongs to ECON 200 at University of Washington taught by melissa knox in . Since its upload, it has received 33 views. For similar materials see microeconomics in Economcs at University of Washington.
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I'm pretty sure these materials are like the Rosetta Stone of note taking. Thanks Trevor!!!
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Date Created: 06/08/15
0602 ECON 200 06022015 Nash Equilibrium a situation in which each rm chooses the best strategy given the strategies chosen by other rms Price leadership a form if implicit collusion in which one rm in an oligopoly announces a price change and the other rms in the industry match Cartel is a group of rms that collude by agreeing to restrict output to increase prices and pro ts 0 Organization of the Petroleum Exporting Countries OPEC Simultaneous vs Sequential Games 0 The game theory models we have analyzed so far have been simultaneous the players have made their decisions at the same time 0 But some games are sequential in nature one rm makes a decision and the other makes its decisions having observed the rst rm s decisions Backwards induction nd the pro t maximizing choices for the player who chooses last at the terminal nodes and assume they will only make those choices SubgamePerfect Equilibrium a Nash equilibrium in which no player can importance their outcome by changing their decision at any decision node
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