Sample Midterm
Discussed in Class 13 February 2007
This sample midterm is longer than your midterm will be to give you the most practice
possible. Your actual exam will include 5 questions - but some of the questions will be
shorter than those presented h
Introduction
Simultaneous Games
Sequential Games
Nash Equilibrium
Two-Week Review
Ken Jackson
UBC
January 23rd, 2007
Ken Jackson
Two-Week Review
Introduction
Simultaneous Games
Sequential Games
Nash Equilibrium
What are the Relevant Parts of a Game
Player
Midterm Review
Ken Jackson
UBC
February 8th, 2007
Ken Jackson
Midterm Review
The following problem will illustrate the assumptions of game theory - see if
you can think of the answer.
Question
A group of monks live in an abbey in general isolation from th
Econ 221 - Course Notes
Ken Jackson
01 March 2007
1
Adverse Selection
Consider rst our example.
There are 1,000 cars available to be sold. 500 of those cars are high-quality cars (peaches)
that are worth $5,000 to the buyer and 500 of those cars are low-q
Econ 221 - Course Notes
Ken Jackson
30 January 2007
1
Repeated Games
Most of the games considered to this point in the course have been short - either the players
move simultaneously and once only or they each have a very small number of moves in a
sequen
Econ 221 - Course Notes
Ken Jackson
25 January 2007
1
More on Mixed Strategies
Mixed strategies are covered in Chapter 7 of your textbook.
Now consider a coordination game such as the battle of the sexes game we looked at last
week.
Bob
Amy
Ballet
(2,1)
(
Econ 221 - Course Notes
Ken Jackson
23 January 2007
1
Zero-Sum Games
The textbook covers this material in Chapter 7. There are many games in which players
do not want to play pure strategies - there is potentially great advantage to surprising the
opposit
Econ 221 - Course Notes
Ken Jackson
18 January 2007
1
Subjects Covered Here
Nash equilibrium - denition
Finding a Nash equilibrium in normal form games
2
Nash Equilibrium
Denition 1 A strategy is a best response to an opponents strategy if it provides t
Econ 221 - Course Notes
Ken Jackson
16 January 2007
1
Subjects Covered Here
Extensive form games
Look forward, reason back
The value of commitment
2
Extensive Form Games
Games in which players make decisions after learning the actions of other players
Econ 221 - Course Notes
Ken Jackson
January 11th, 2006
1
Covered Today
Assignment 1 handed out - due Thursday, January 18th either in class or to your TA.
Writing a game in normal form - simultaneous games.
Dominant and dominated strategies.
Equilibri
Econ 221 - Course Notes
Ken Jackson
January 9th, 2006
1
Subjects to be Covered
Course outline, assignments, exams, marks etc. - see the course outline.
What is game theory and what denes a strategic situation?
Terms and denitions
2
Game Theory and Stra
Econ 221 - Course Notes
Ken Jackson
06 February 2007
1
Many Players, Continuous Actions
So far we have primarily been concerned with situations that deal with two players and
a very limited set of actions to choose from. For these situations we have intro
Econ 221 - Course Notes
Ken Jackson
01 February 2007
1
Innitely Repeated Games
In the last class we considered games that repeat for a specic number of periods but have a
denite, nite ending point to the game. In this section we consider a further class o