This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: b. Nash equilibrium: when A’s choice is optimal given B’s choice and B’s choice is optimal given A’s choice c. Dominant strategy equilibrium: strategy which is better than the other strategy no matter what the opponent does. A’s choice is optimal regardless of B’s choice. AND B’s choice is optimal regardless of A’s behavior d. Example 4. Prisoners’ Dilemma a. Payoff matrix b. Equilibrium c. Pareto efficient/inefficient d. Example 5. Even more games a. Examples 6. Auctions a. Types i. Ascending ii. Descending iii. 1 st-Price Sealed-Bid iv. 2 nd-Price Sealed-Bid b. Strategies 7. Conclusions III. NEXT TIME A. Second exam over Chapters 8, 9, 10, 11...
View Full Document
- Spring '08
- Game Theory, payoff matrix, Dominant strategy equilibrium, A. Practice Problems, A. Strategic interaction