Class 4 - L ast Time War/cooperation is outcome of interdependent decision What you do depends on what you think the other guy will do Importance of

Last Time… War/cooperation is outcome of interdependent decision - What you do depends on what you think the other guy will do Importance of resolve/reputation - Maintaining resolve to ensure peace can be costly Today: some games to figure this out - Chicken and Prisoner’s Dilemma - Leads to security dilemma and, if time, offense/defense Strategic and Suboptimal Two characteristics of a game - Strategic: decisions based on other’s decisions/expectation of other’s decisions - Suboptimal: sometimes both sides don’t get what they want, in order to prevent the other side gaining advantage o B and R build railway The Game of Chicken Ex. A and B drive cars at each other. First gto swerve (cooperate) is the chicken. One who keeps going (defects) wins the girl Is there a dominant strategy?  cooperate Why does this matter? - Importance of reputation o If the other guy thinks you will swerve, you will always lose o If you don’t swerve, you crash How to Play Chick