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Game Theory short. What a "Game" means in Game Theory. Rivalry is direct. In "Zero-Sum" games you win just what the other guy loses. Economic market games.

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Presentation on theme: "Game Theory short. What a "Game" means in Game Theory. Rivalry is direct. In "Zero-Sum" games you win just what the other guy loses. Economic market games."— Presentation transcript:

1 Game Theory short

2 What a "Game" means in Game Theory. Rivalry is direct. In "Zero-Sum" games you win just what the other guy loses. Economic market games are often non-zero sum. Noncooperative often. Oligopolistic.

3 Who needs to study Game Theory? We will do two-person games in this course.

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5 Nash Equilibrium: A set of strategies such that each player believes accurately that he is doing the best he can given the strategy of the other player.

6 Nash as a young man Nash as a Nobel Prize Winner The book and the Oscar-winning movie.

7 Barkley A B Allied I II

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10 Applications of Game Theory outside of economics: Prisoner's Dilemma MAD our historical Cold War policy on nuclear attack missiles and our defensive system.

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12 Does Cheating Pay?

13 Before Most-favored Customer Clause

14 After Most-Favored Customer Clause

15 Walmart Case: Preemptive strategies.


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