Question

Which of these games is a noncooperative sequential game? Please explain your answer.

a) Cournot model

b) Bertrand model

c) Nash equilibrium

d) Stackelberg model

e) All of the above.

Answer 1

Solution -

Which of these games is a noncooperative sequential game?

e. All of the above is correct option

Reason -Cooperative games are the one in which players are convinced to adopt a particular strategy through negotiations and agreements between players. Let us take the example cited in prisoner’s dilemma to understand the concept of cooperative games. In case, John and Mac had been able to contact each other, then they must have decided to remain silent. Therefore, their negotiation would have helped in solving out the problem.