The Bijou Theater in Hermosa Beach, California, shows vintage movies. Customers arrive at the theater line at the rate of 100 per hour. The ticket seller averages 30 seconds per….
Characterize the stochastically stable states of the (perturbed) evolutionary process thus induced.
Recall the hybrid behavioral dynamics contemplated in Subsection
12.4.3 for the context in which a bilateral coordination game is played under centralized interaction. There, player 1was postulated to adjust her behavior through
myopic best response (i.e., according to (12.36)), whereas players 2 through n
were assumed imitators among themselves (i.e., behave as in (12.35)). Apply the
same behavioral mixture to the Cournot context described in Subsection 18.104.22.168;
i.e., suppose firm 1 behaves according to (12.5) and firms 2 through n behave according
to (12.3). Characterize the stochastically stable states of the (perturbed)
evolutionary process thus induced.