The mixed strategy equilibrium of the three-firm location game with discrete location choices

In the paper, we derive a symmetric MSE for the three-firm location game on the discrete strategy space. Rather than being uniformly distributed, the MSE for the game has a multimodal distribution. Our theory is more convincing to predict equilibria of three-firm location games in the real world or controlled experiments, where players face finitely many choices.

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Year of publication:	2011
Authors:	Huang, Zhiyong
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 31.2011, 3, p. 2109-2116
Publisher:	AccessEcon
Subject:	mixed strategy equilibrium \| multimodal distribution \| discrete strategy space

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Classification:	C7 - Game Theory and Bargaining Theory ; D7 - Analysis of Collective Decision-Making
Source:	RePEc - Research Papers in Economics

Persistent link: https://ebvufind01.dmz1.zbw.eu/10009195427