Nash equilibrium in a game of calibration

Deterministic Calibration and Nash Equilibrium

We provide a natural learning process in which the joint frequency of (time-averaged) empirical play converges into the set of convex combinations of Nash equilibria. Furthermore, the actual distribution of players’ actions is close to some (approximate) Nash equilibria on most rounds (on all but a vanishing fraction of the rounds). In this process, all players rationally choose their actions u...

Operant Matching as a Nash Equilibrium of an Intertemporal Game

Over the past several decades, economists, psychologists, and neuroscientists have conducted experiments in which a subject, human or animal, repeatedly chooses between alternative actions and is rewarded based on choice history. While individual choices are unpredictable, aggregate behavior typically follows Herrnstein's matching law: the average reward per choice is equal for all chosen alter...

Dynamic Stability of the Nash Equilibrium for a Bidding Game

A one-sided limit order book is modeled as a noncooperative game for several players. An external buyer asks for an amount X > 0 of a given asset. This amount will be bought at the lowest available price, as long as the price does not exceed a upper bound P . One or more sellers offer various quantities of the asset at different prices, competing to fulfill the incoming order. The size X of the...

Modeling, Survey the Nash Equilibrium and Optimal Tax Fine Rate Determine in the Game of Taxpayers and Tax Affairs Organization

Todays, the importance of taxes as the main source of government revenue has been approved by economic policymakers and therefore, designing an optimal tax system to achieve this subject is essential. Governments are looking for ways to receive their target taxes from taxpayers at the lowest possible cost and at the declaration tax. Taxpayers, on the other hand, seek to postponed their taxes as...

Lecture 3 – Network Congestion Game / Mixed ( Nash ) Equilibrium