The payoffs are recorded i the form row colum e in

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

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: uccessive elimination of (weakly dominate strategie n y) ed es... [i] ma not yield a unique o ay d outcome, [ii] re equires com mmon know wledge, and s for dominated strategies ( (after all, th player is he [iii] is particularly dubious f weakly d indiff ferent). Now let's do thr rough anoth exercise using the successive eliminatio of her e e on (wea akly) domina ated strateg gies... 300 Cons sider a two player gam in strateg form giv as: me gic ven Now, let's illustr rate the "inf formation lo oss" we exp perience by analysing a game in y the s strategic for rm. Take a few minutes to draw an extensive form re e w epresentati of the tw player ion wo strate egic form game above Is your representati the only possible e g e. ion y extensive form game for this payoff m matrix? BLE TEGIES AN NASH E ND EQUILIBRIA A RATIONALIZAB STRAT Defin nition: A str rategy, s, is a "best res s sponse" for player i to his rival's s r strategies if the payoff f f to pla ayer i from playing s is greater th the payoff to playe i from any other s han er y strate (taking the rival's strategies a given). egy as 301 Defin nition: A Na Equilibr ash rium in pure strategies is a set of strategies, one for ea player, e s ach such that each player's str h rategy maxi imizes their payoff tak r king the othe player's er strate egies as giv (i.e. mu ven utual best r response). Let's see how th works... s his ...consider th following two perso game in strategic he g on form: How do we find these "mutual best re esponses"? First, let's take as given that player 1 will choose his pure s a e strategy T. What is playe 2's best response to this inform er o mation? en payoffs When player 1 plays T, the player 2 can choose L, C, or R with his p g being 4 for L, 2 for C, and 3 for R. Clearly, when player 1 play T the be response from play 2 is to p p ys est yer play L. Now, we need to check if T is player 1's best res t sponse if pl layer 2 play L. ys en B, offs When player 2 plays L, the play...
View Full Document

This note was uploaded on 05/25/2010 for the course ECON 301 taught by Professor Sning during the Spring '10 term at University of Warsaw.

Ask a homework question - tutors are online