{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}


roywchen_103108_17308Eco...ummary_of_topics_Midterm_2 - o...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ 398: Summary of topics relevant to Midterm 2 Simultaneous and sequential games Changing the rules/order of play Portraying games in different forms o Sequential games strategic/normal form o Simultaneous games extensive form Subgames Subgame-perfect equilibria Utility over gambles Expected utility property Risk neutrality, risk aversion, risk loving St. Petersburg & Allais paradoxes Mixed-Strategy Nash equilibria Mixed strategies Nash equilibria in mixed strategies Opponent’s indifference property Expected payoffs 2x2 games o Expected utilities of pure strategies o Best responses and intersections of best responses (Nash equilibria) o Minimax method (zero-sum games only) Games larger than 2x2 o Deleting dominated strategies (and rationalizability)
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: o Full and partial mixing o In a Nash equilibrium, any pure strategies that a player uses with positive probability must have the same expected payoff, and any pure strategy that a player uses with zero probability must have a lower expected payoff than any pure strategy that player uses with positive probability Complicated examples • War of attrition: drawing utilities in order to figure out the best responses • Expert advice: writing a sequential game in strategic form in order to find Nash equilibria (pure and mixed) • Cheap talk: Multiple subgame-perfect Nash equilibria in a game with both sequential and simultaneous moves...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online