6.1 Consider a simultaneous game in which player A chooses one of two actions (Up or Down), and B chooses one of two actions (Left or Right). The game.

Slides:



Advertisements
Similar presentations
PowerPoint Slides by Robert F. BrookerCopyright (c) 2001 by Harcourt, Inc. All rights reserved. Strategic Behavior Game Theory –Players –Strategies –Payoff.
Advertisements

Chapter 17: Making Complex Decisions April 1, 2004.
Game Theory John R. Swinton, Ph.D. Center for Economic Education
Pondering more Problems. Enriching the Alice-Bob story Go to AGo to B Go to A Alice Go to B Go to A Go to B Go shoot pool Alice.
Game Theory Assignment For all of these games, P1 chooses between the columns, and P2 chooses between the rows.
Mixed Strategies For Managers
Chapter Twenty-Eight Game Theory. u Game theory models strategic behavior by agents who understand that their actions affect the actions of other agents.
Game Theory “I Used to Think I Was Indecisive - But Now I’m Not So Sure” - Anonymous Mike Shor Lecture 5.
Managerial Economics Game Theory for Oligopoly
1 Game Theory. 2 Agenda Game Theory Matrix Form of a Game Dominant Strategy and Dominated Strategy Nash Equilibrium Game Trees Subgame Perfection.
For any player i, a strategy weakly dominates another strategy if (With at least one S -i that gives a strict inequality) strictly dominates if where.
Game Theory Advertising Example 1. Game Theory What is the optimal strategy for Firm A if Firm B chooses to advertise? 2.
Working Some Problems. Telephone Game How about xexed strategies? Let Winnie call with probability p and wait with probability 1-p. For what values of.
Game Theory And Competition Strategies
Games with Simultaneous Moves I :Discrete Strategies
The Prisoner’s Dilemma -Both arrested during botched bank robbery. -Kept in separate cells – NO COMMUNICATION. -Offered separate deals if they confess.
Nash equilibrium and Best Response Functions
EC102: Class 9 Christina Ammon.
Non-cooperative Game Theory Notes by Alberto Bressan.
Chapter 9: Economics of Strategy: Game theory
Game Problems. Which number is closest to the circumference of the earth? A) 15,000 miles B) 25,000 miles C) 35,000 miles D) 45,000 miles E) 55,000 miles.
January 20 Lecture Econ 171. The game of matching pennies has A)two pure strategy Nash equilibria B)One pure strategy Nash equilibrium C)One mixed strategy.
Chapter Twenty-Eight Game Theory. u Game theory models strategic behavior by agents who understand that their actions affect the actions of other agents.
Game Theory and Applications following H. Varian Chapters 28 & 29.
Lectures in Microeconomics-Charles W. Upton Game Theory.
Lectures in Microeconomics-Charles W. Upton Simple Business Games.
Simple Business Games. How much to Produce Dominant Strategy Nash Equilibrium.
Outline  In-Class Experiment on a Coordination Game  Test of Equilibrium Selection I :Van Huyck, Battalio, and Beil (1990)  Test of Equilibrium Selection.
An introduction to game theory Today: The fundamentals of game theory, including Nash equilibrium.
Lecture Slides Dixit and Skeath Chapter 4
An introduction to game theory Today: The fundamentals of game theory, including Nash equilibrium.
Game Theoretic Analysis of Oligopoly lr L R 0000 L R 1 22 The Lane Selection Game Rational Play is indicated by the black arrows.
EC941 - Game Theory Francesco Squintani Lecture 3 1.
An introduction to game theory Today: The fundamentals of game theory, including Nash equilibrium.
1. problem set 6 from Osborne’s Introd. To G.T. p.210 Ex p.234 Ex p.337 Ex. 26,27 from Binmore’s Fun and Games.
Micro Review Game Theory and Taxation Dominant Strategy One strategy is better for a given player, regardless of what his/her opponent chooses to do.
Game Theory The Prisoner’s Dilemma Game. “Strategic thinking is the art of outdoing an adversary, knowing that the adversary is trying to do the same.
Extensive Form Games With Perfect Information (Extensions)
Strategic Decisions in Noncooperative Games Introduction to Game Theory.
\ B A \ Draw a graph to show the expected pay-off for A. What is the value of the game. How often should A choose strategy 1? If A adopts a mixed.
KRUGMAN'S MICROECONOMICS for AP* Game Theory Margaret Ray and David Anderson Micro: Econ: Module.
Strategic Behavior in Business and Econ Static Games of complete information: Dominant Strategies and Nash Equilibrium in pure and mixed strategies.
1 The Volunteer’s Dilemma (Mixed Strategies). 2 The Volunteer Dilemma Game Simultaneously and independently, players have to decide if they wish to volunteer.
Pondering more Problems. Enriching the Alice-Bob story Go to AGo to B Go to A Alice Go to B Go to A Go to B Go shoot pool Alice.
ECO290E: Game Theory Lecture 3 Why and How is Nash Equilibrium Reached?
Ch. 16 Oligopoly. Oligopoly Only a few sellers offer similar or identical products Actions of any seller can have large impact on profits of other sellers.
Extensive Form (Dynamic) Games With Perfect Information (Theory)
KRUGMAN'S MICROECONOMICS for AP* Game Theory Margaret Ray and David Anderson 65 Module.
ECO290E: Game Theory Lecture 8 Games in Extensive-Form.
Entry Deterrence Players Two firms, entrant and incumbent Order of play Entrant decides to enter or stay out. If entrant enters, incumbent decides to fight.
Day 9 GAME THEORY. 3 Solution Methods for Non-Zero Sum Games Dominant Strategy Iterated Dominant Strategy Nash Equilibrium NON- ZERO SUM GAMES HOW TO.
Working Some Problems.
Game theory basics A Game describes situations of strategic interaction, where the payoff for one agent depends on its own actions as well as on the actions.
Chapter 28 Game Theory.
Microeconomics Course E
Project BEST Game Theory.
Nash Equilibrium A strategy combination (a,b) is a Nash equilibrium for two players if neither player would unilaterally deviate if he expected the other.
Ch. 16 Oligopoly.
Simultaneous Move Games: Discrete Strategies
©2011 John M. Abowd and Jennifer P. Wissink, all rights reserved.
Oligopoly & Game Theory Lecture 27
Oligopoly & Game Theory Lecture 27
UNIT 4. SOCIAL INTERACTIONS
Managerial Economics Kyle Anderson
نسیم لحیم‌گرزاده استاد درس: دکتر فرزاد توحیدخواه
Game Theory.
Finding Best Responses by Underlining Payoffs
9.3 Linear programming and 2 x 2 games : A geometric approach
Molly W. Dahl Georgetown University Econ 101 – Spring 2009
Lecture Game Theory.
Presentation transcript:

6.1 Consider a simultaneous game in which player A chooses one of two actions (Up or Down), and B chooses one of two actions (Left or Right). The game has the following payoff matrix, where the first payoff in each entry is for A and the second for B. Find the Nash equilibrium or equilibria. Which player, if any, has a dominant strategy? B Left Right Up 3 , 3 3 , 1 2 , 2 4 , 4 A Down

6.8 Find the pure-strategy Nash equilibrium or equlibria of the following game with three actions for each player. B Left Center Right 4 , 3 5 , -1 6 , 2 2 , 1 7 , 4 3 , 6 3 , 0 9 , 6 0 , 8 Up A Middle Down