Unformatted text preview: essence of a type of strategic interaction that is frequently present in more complex situations. • Example 15.3 (Bach or Stravinsky ? (BoS )) Two people wish to go out together to a concert of music by either Bach or Stravinsky. Their main concern is to go out together, but one person prefers Bach and the other person prefers Stravinsky. Representing the individuals' preferences by payoff functions, we have the game in Figure 16.1. This game is often referred to as the "Battle of the Sexes"; for the standard story behind it see Luce and Raiffa (1957, pp. 90-91). For consistency with this nomenclature we call the game "BoS". BoS models a situation in which players wish to coordinate their behavior, but have conflicting interests. The game has two Nash equilibria: ( Bach, Bach ) and ( Stravinsky, Stravinsky ). That is, there are two steady states: one in which both players always choose Bach and one in which they always choose Stravinsky ....
View Full Document
- Spring '10
- Game Theory, Stravinsky, profile a*, set-valued function Bi