Ch28 notes

Ch28 notes - dominant strategy-one optimal choice of...

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dominant strategy -one optimal choice of strategy for each player no matter what the other player does. If there is a dominant strat. for each player in some game, then we would predict that it would be the equilibrium outcome of the game. Nash equilibrium -a pair of expectations about each person's choice such that, when the other person's choice is revealed, neither individual wants to change his behavior. Each person is making the optimal choice, given the other person's choice. pure strategy -making one choice and sticking to it mixed strategy- strategy consisting of possible moves and a probability distribution (collection of weights) which corresponds to how frequently each move is to be played. A player would only use a mixed strategy when she is indifferent between several pure strategies, and when keeping the opponent guessing is desirable - that is, when the opponent can benefit from knowing the next move. Nash equilibrium in mixed strategies refers to an equilibrium in which each agent
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Ch28 notes - dominant strategy-one optimal choice of...

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