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Class_2 - Econ 171 Introduction to Game Theory Lecture 2...

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Unformatted text preview: Econ 171 Introduction to Game Theory Lecture 2 Overview Go through the Handout on Normal Form Games. In Normal Form (or Strategic Form) games, players choose their action once and for all, with choices being made simultaneously . Today: Iterated Elimination of Dominated Strategies (IEDS) Iterated Elimination of Dominated Strategies using expected utility and mixing strategies. Classic Normal Form games. Review of terms & concepts Recall game a), or Prisoners Dilemma . Review of terms & concepts Recall game a), or Prisoners Dilemma. Solved it using the dominance concept, which relies on the assumption that players are rational. Dominance solvable = one rationalizable outcome s ={D,D}. Review of terms & concepts Look at b) again Dominance does not yield a unique prediction, unless we use IEDS . Rationalizable strategies are those that survive IEDS . What is the only rationalizable strategy profile? Is it dominance solvable? Review of terms & concepts Look at b) again Dominance does not yield a unique prediction, unless we use IEDS . Rationalizable strategies are those that survive IEDS . What is the only rationalizable strategy profile? Is it dominance solvable? Review of terms & concepts Look at b) again Dominance does not yield a unique prediction, unless we use IEDS . Rationalizable strategies are those that survive IEDS . What is the only rationalizable strategy profile? Is it dominance solvable? Review of terms & concepts Look at b) again...
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This note was uploaded on 11/03/2011 for the course ASAM 2 taught by Professor Staff during the Spring '10 term at UCSB.

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Class_2 - Econ 171 Introduction to Game Theory Lecture 2...

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