What does Epsilon mean in macroeconomics?
In economics, ε refers to elasticity. In statistics, it is used to refer to error terms.
What is Epsilon microeconomics?
In game theory, an epsilon-equilibrium, or near-Nash equilibrium, is a strategy profile that approximately satisfies the condition of Nash equilibrium. In a Nash equilibrium, no player has an incentive to change his behavior.
How do you find correlated equilibrium?
For a correlated equilibrium, we need to find a probability distribution on the set of all possible strategies. Let si be an element of the set of pure strategies of player i and let s = (s1,…,sk). Also let payoffi(s) be the payoff to player i when strategy s is followed by the players.
What is the Cournot equilibrium?
The basic Cournot assumption is that each firm chooses its quantity, taking as given the quantity of its rivals. The resulting equilibrium is a Nash equilibrium in quantities, called a Cournot (Nash) equilibrium.
What if there is no Nash equilibrium?
Nash’s theorem states that every game with a finite number of players and a finite number of pure strategies has at least one Nash equilibrium. As a result, a game with infinitely many strategies might have no equilibria. Even if we cannot draw a game’s matrix or game tree, we can still analyze it.
What does epsilon mean in statistics?
Error term
Εε Epsilon. ε: “Error term” in regression/statistics; more generally used to denote an arbitrarily small, positive number.
Is epsilon a constant?
Epsilon Naught is an ideal physical constant that is the representative of the absolute dielectric permittivity of a vacuum. In other words, Epsilon Naught quantifies a vacuum’s ability to facilitate the flowing of electric field lines through it.
What is coarse correlated equilibrium?
The 1 Page 2 CS 6840, Spring 2020 Lecture 16: Coarse Correlated Equilibrium CE is an equilibrium because if each player i assumes that every other player does what the coordinator tells them to do, then player i should also behave and play strategy si.
Is Nash equilibrium always Pareto efficient?
Often, a Nash Equilibrium is not Pareto efficient implying that the players’ payoffs can all be increased.