Lecture11_GameTheory1 - Lecture 11 Game Theory 1 Click to...

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Click to edit Master subtitle style  11/5/10 Lecture 11 Game Theory 1 Econ 121: Industrial Organization UC Berkeley Fall 2010 Prof. Cristian Santesteban
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 11/5/10 Overview Game Theory – Review Dominant Strategies – Prisoner’s Dilemma Sequential Games
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 11/5/10 Definition of a Game A “game” consists of A set of players A set of strategies for each player A payoff function that tells us what each player gets as a function of the strategies chosen by all players
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 11/5/10 Dominant Strategies A dominant strategy is a strategy that is optimal no matter what strategies are chose by the other players If a player has a dominant strategy, then he does not have to form expectations about what his opponent is going to do. Easy to analyze. The players must
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COMPETITION VERSUS COLLUSION: 12.4 TABLE 12.4 Payoff Matrix for Prisoners’ Dilemma Prisoner B Confess Don’t confess Prisoner A Confess –5, –5
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This note was uploaded on 11/05/2010 for the course ECON 121 taught by Professor Woroch during the Fall '07 term at University of California, Berkeley.

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Lecture11_GameTheory1 - Lecture 11 Game Theory 1 Click to...

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