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Existence of a Nash equilibrium - MIT OpenCourseWare

Feb 18, 2010 · profitable unilateral deviations for sufficiently small, thus establishing the nonexistence of a pure strategy Nash equilibrium: p1 = p2 = 0: A small increase in the price of provider 1 will generate positive profits, thus provider 1 has an incentive to deviate. p1 = p2 > 0: Let x be the corresponding flow allocation. If x1 = 1,

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