Week 7 Lecture_Game_Theory0

Week 7 Lecture_Game_Theory0 - Week7 GameTheory...

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    Week 7 Game Theory
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    How to properly write a  strategy profile? Static game: (s 1 , s 2 ). Dynamic game: contingent plans For example, if player 1 moves first, and  player 2 moves second. (s 1 , s 2 (s 1 ))
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    A Dynamic Game Example (U,L)  is what you observe on the eqm. U D L L R R (3,9) (1,8) (0,0) (2,1) A B B A subgame  perfect NE is  1) A plays U 2) B plays L  if A plays U,  B plays R if  A plays D.
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Strictly and weakly dominant  strategies Strategy s 1   strictly  dominates s 1 ’ for player 1 if s 1   gives a strictly higher utility to player 1 than s 1 ’ no  matter what other players play. A strategy is  strictly  dominant for player 1 if it strictly  dominates all other strategies of player 1. Strategy s 1   weakly  dominates s 1 ’ for player 1 if s 1   gives a weakly higher utility to player 1 than s 1 ’ no  matter what other players play, and given at least one 
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Week 7 Lecture_Game_Theory0 - Week7 GameTheory...

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