This paper provides an overview of the various shapes the best- reply multifunctions can take in 2×2×2 trimatrix games. It is shown that, unlike in 2×2 bimatrix games, the best replies to the opponents’ pure strategies do not completely determine the structure of the Nash equilibrium set.

Finite potential games have Nash equilibria in pure strategies.This note provides some results on the existence of equilibria or approximate equilibria if some players have infinite sets of strategies.

In this paper an experimental environment to test theoretical predictions concerning R&D behavior of firms in duopoly with allowance for R&D spillovers is created. The design and hypotheses of the experiment are based on the well-known model of d Aspremont and Jacquemin in which R&D behavior of...

In this paper some new approximate fixed point theorems for multifunctions in Banach spaces are presented and a method is developed indicating how to use approximate fixed point theorems in proving the existence of approximate Nash equilibria for non-cooperative games.

We present a household consumption model that accounts for caring house- hold members, while allowing for noncooperative behavior in decisions on pub- lic goods. The intrahousehold consumption outcome critically depends on the degree of caring between the household members. By varying the degree...

Dynamic game theory is applied to analyze the timber market in northern Iran as a duopsony. The Nash equilibrium and the dynamic properties of the system based on marginal adjustments are determined. When timber is sold, the different mills use mixed strategies to give sealed bids. It is found...

Sufficient conditions for Nash equilibrium in an n-person game are given in terms of what the players know and believe — about the game, and about each other's rationality, actions, knowledge, and beliefs. Mixed strategies are treated not as conscious randomizations, but as conjectures, on the...

AbstractWe exhibit a large class of simple rules of behavior, which we call adaptive heuristics, and show that they generate rational behavior in the long run. These adaptive heuristics are based on natural regret measures, and may be viewed as a bridge between rational and behavioral...