Rotterdam Brown Bag Seminars General Economics

Andrei Dubovik (CPB)
Wednesday, 21 June 2017

Abstract: Together with colleagues, I am organizing a computer tournament in Bertrand-Edgeworth games. Each participant writes a program that plays for a capacity constrained firm in a duopolistic market. The program that obtains most profits wins. In theory, there is a Nash equilibrium in mixed strategies. However, I will argue that the Nash equilibrium concept might be ill-suited for practical applications, because Nash strategies are not robust against non-Nash players. In general, we hope that the results of the tournament might shed light on real life competition in capacity constrained industries. (The project is in its early stages and I will be mostly talking about plans rather than results.)