15 Game Theory

Pareto noticethenashequilibriumhasthehighesttotal

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Unformatted text preview: ost (DNC, DNC). Player 2 C DNC C ­6 , ­6 0 , ­9 Player 1 DNC ­9 , 0 ­1 , ­1 17 Another Game ► Suppose now there are two Players, Row and Column, with two Strategies each. Row can go Up or Down Column can go Left or Right Column Player Left Right Up 5 , 11 1 , 10 Row Down 10 , 7 2 , 2 Player 18 Another Game – Eliminating Strictly Dominated Strategies ► Down is a Dominant Strategy and Up is a Dominated Strategy. (10>5 and 2>1) ► Left is a Dominant Strategy and Right is a Dominated Strategy. (7>2) ► Thus, (Down, Left) is a Nash Equilibrium. Column Player Left Right Up 5 , 11 1 , 10 Row Down 10 , 7 2 , 2 Player 19 ► ► ► ► Another Game – Stars If Column chooses Lef...
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