15 Game Theory

Oneoftwothingswillhappen

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Unformatted text preview: t, Row is better choosing Down (10>5) Star Row’s payoff for (Down, Left) If Column chooses Right, Row is better choosing Down (2>1) Star Row’s payoff for (Down, Right) If Row chooses Up, Column is better choosing Left (11>10) Star Column’s payoff for (Up, Left) If Row chooses Down, Column is better choosing Left (7>2) Star Row’s payoff for (Down, Left) ► Thus (Down, Left) is the Nash Equilibrium (2 stars) Column Player Left Right Up 5 , 11 1 , 10 Row Down 10 , 7 2 , 2 20 Another Game – Nash vs. Pareto ► Notice the Nash Equilibrium has the highest total s...
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This document was uploaded on 03/23/2014.

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