Game Theory_Presentation - PAM 200 Intermediate...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
PAM 200 Intermediate Microeconomics Game Theory Game Theory Chapter 14
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Game Theory Notes 2 Game Theory Competitive and monopolistic markets are pretty boring. There is no advanced strategery involved! Firms in those worry only about their own choices. When a market has a small number of influential firms, each firm has to take into account how the other firms would react to its decisions. To think about how such markets operate, we will first talk a little about Game Theory .
Background image of page 2
Game Theory Notes 3 Highlights from the History of Game Theory 0-500AD The Babylonian Talmud is the compilation of ancient law and tradition set down during the first five centuries A.D. which serves as the basis of Jewish religious, criminal and civil law. One particular recommendation of the Talmud regarding the division of marital property baffled Talmudic scholars for two millennia. In 1985, it was recognized that the Talmud anticipates the modern theory of cooperative games. The solution corresponds to a prediction of an appropriately defined game. (Aumann and Maschler, 1985, “Game Theoretic Analysis of a Bankruptcy Problem from the Talmud,” Journal of Economic Theory ).
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Game Theory Notes 4 Highlights from the History of Game Theory 1838 Publication of Augustin Cournot’s Researches into the Mathematical Principles of the Theory of Wealth . In chapter 7, On the Competition of Producers , Cournot discusses the special case of duopoly and utilizes a solution concept that is a restricted version of the Nash equilibrium
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 18

Game Theory_Presentation - PAM 200 Intermediate...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online