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What is Game Theory?
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Elements of a Game
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Normal Form Game
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Nash Equilibrium Definition
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Nash Equilibrium Example
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Dominant Strategy
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Coordination Game
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Introduction and Definition
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Example
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Discussion
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Brief Historical Interlude
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Cournot Competition
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Bayesian Games Overview
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Example
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Mixed Strategy Equilibrium in Cyber Security
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Overfishing and Regulation
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What We've Learned and What's to Come
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7.1 Cournot Competition » Quiz Solution
Question: Recall the game from lesson 7. Suppose rm 1's per-unit marginal cost increases (c1 increases).
What happens to the Nash equilibrium quantity for player 2?
Answer: (a) Increases
Explanation: The equilibrium quantity for rm 2 is . Increasing c1 therefore increases q*2.