Core of an Exchange Economy: Blocking Coalitions
core of an exchange economy analysis explains how blocking coalitions restrict feasible trades and why competitive markets shrink the stable...
Game Theory
Repeated Games and Folk Theorem: How Cooperation Emerges Without Contracts
Repeated Games and Folk Theorem explains how patience, punishment, and reputation sustain cooperation when formal contracts cannot enforce behaviour.
Bayesian Games: Strategy Under Incomplete Information
Bayesian Games explain strategic choice under private information using types, priors, beliefs, and Bayesian Nash Equilibrium.
Subgame Perfect Equilibrium: Beyond Nash in Sequential Games
Subgame Perfect Equilibrium refines Nash equilibrium by requiring optimality in every subgame, eliminating non-credible threats in sequential strategic interactions.
Hotelling Location Model: How Competitors Cluster Together
The Hotelling Location Model explains why competing firms cluster at the market centre, balancing the pull of market share against...
Spence Signalling Model: How Education Signals More Than It Teaches
The spence signalling model explains how education functions as a costly signal of ability, allowing high-productivity workers to separate themselves...
Bertrand Cournot Model Economics: How Oligopolists Compete on Price vs. Quantity
The Bertrand Cournot model economics framework explains how oligopolists compete. Cournot firms set quantities and earn positive profit. Bertrand firms...
Median Voter Theorem: Why Politicians Converge to the Centre
The median voter theorem explains why two candidates in a democracy converge to the centre, when the prediction holds, and...
Auction Theory Economics: From eBay Bidding to Spectrum Sales
Auction theory economics studies how bidding rules turn private valuations into prices, shaping spectrum sales, internet ads, Treasury bonds, and...
The Nash Equilibrium: Understanding Strategic Behaviour in Economics
The Nash equilibrium defines a set of strategies where no player can gain by unilaterally changing their choice. It is...