Ten commuters must decide simultaneously in the morning to use route A or route B to go from home (same place for all) to work (ditto). If a of them use route A, each of them will travel for 10a + 40 minutes; if b of them use route B, each of them will travel for 10b minutes. Everyone wishes to minimize his/her commuting time.
Ten commuters must decide simultaneously in the morning to use route A or route B to go from home (same place for all) to work (ditto). If a of them use route A, each of them will travel for 10a + 40 minutes; if b of them use route B, each of them will travel for 10b minutes. Everyone wishes to minimize his/her commuting time.
Chapter8: Game Theory
Section: Chapter Questions
Problem 8.4P
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1. Ten commuters must decide simultaneously in the morning to use route A or route B to go from home (same place for all) to work (ditto). If a of them use route A, each of them will travel for 10a + 40 minutes; if b of them use route B, each of them will travel for 10b minutes. Everyone wishes to minimize his/her commuting time.
a) Describe the pure Nash equilibrium (or Nash equilibria) of this ten-person game. Compute the corresponding profile of commuting times. Explicitly list all equilibrium conditions that are satisfied.
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