I want to prove the following, but first a little about me. I have taken courses in proofs, but I am only familiar with proofs at the introductory level. I am only familiar with the basics of game theory. I understand rent seeking fairly well.
I want to mathematically prove the following behavior: Where two players will compete for some given rent, where if both players bid low (nothing) each will have a 50% chance of attracting this rent (indiferent). If one bids high and the other low, the high bidder receives the rent (1). To attract this rent they need to spend a part of this rent and so the rent is erroded marginally.
Let's say after player one bids high for a net payoff of .9. Player two will bid for a net payoff of .8 and so on all the way down to where the net pay off is 0. In theory, there are an infinite amount of choices between 1 and 0.
I want to formally prove this fact to incorporate into a paper I am writing. Can anyone help me or point me to a good resource I can use
2007-03-02
02:41:23
·
1 answers
·
asked by
eire1130
2
in
Science & Mathematics
➔ Mathematics