ECON 4109H
LECTURE 2
NASH EQUILIBRIUM
September 13, 2010
ECON 4109H LECTURE 2
Strategic Games
Denition
A strategic game (with ordinal preferences) consists of:
a set of players
for each player, a set of actions
for each player, preferences over the set of
Introduction
An Experiment
What is Game Theory?
Theory of Rational Choice
ECON 4109H
LECTURE 1
INTRODUCTION TO GAME THEORY
September 19, 2010
ECON 4109H LECTURE 1
Introduction
An Experiment
What is Game Theory?
Theory of Rational Choice
Class Outline
An E
ECON 4109H
LECTURE 13
Bayesian Games
December 16, 2010
ECON 4109H LECTURE 13
Incomplete Information
Until now, we have assumed that all aspects of the game are
common knowledge.
In many situations, there is uncertainty about certain aspects
of the game or
ECON 4109H
LECTURE 12
The Stability of Marriage
December 8, 2010
ECON 4109H LECTURE 12
The Marriage Problem
Suppose that there is a set M of men and a set W of women.
For each m M there is a strict preference
where corresponds to remaining alone.
For each
ECON 4109H
LECTURE 11
Coalitional Games and the Core
December 8, 2010
ECON 4109H LECTURE 11
Coalitional Games
A Coalitional game is a model of interacting decision-makers
that focuses on behavior of groups of players.
For every group of players, there is
ECON 4109H
LECTURE 10
Extensive Form Games
November 21, 2010
ECON 4109H LECTURE 10
Entry Game
An incumbent faces the possibility faces the possibility of
entry by a challenger.
The challenger may be a rm considering entry into an
industry currently occupi
ECON 4109H
LECTURE 9
Mixed Strategy Equilibrium
October 25, 2010
ECON 4109H LECTURE 9
Matching Pennies
H
T
H
1, 1
1, 1
T
1, 1
1, 1
players match player 2 prefers to switch choice.
players dont match player 1 prefers to switch choice.
So there is no Nash e
ECON 4109H
LECTURE 8
Expected Utility Theory
October 6, 2010
ECON 4109H LECTURE 8
Expected Utility Theory
Finite set X = cfw_1, 2, . . . , n.
lottery = a probability distribution over X .
But what is a probability distribution?
ECON 4109H LECTURE 8
Expect
ECON 4109H
LECTURE 7
Auctions
September 30, 2010
ECON 4109H LECTURE 7
Auctions: Ascending Auctions
Common Auction Form: People sequentially submit higher
bids for an object.
When no one wishes to submit a bid higher than the current
bid, the person making
ECON 4109H
LECTURE 6
Electoral Competition
October 6, 2010
ECON 4109H LECTURE 6
Electoral Competition
Candidates select positions on a left-right axis.
Each citizen votes (nonstrategically) for the candidate he likes
best.
Candidate with most votes wins.
ECON 4109H
LECTURE 5
Oligopoly
October 25, 2010
ECON 4109H LECTURE 5
Oligopoly
How does competition among rms depend on characteristics
of demand for rms output, the nature of rms cost
functions, and the number of rms?
Will benets of technological improve
ECON 4109H
LECTURE 4
Weak Dominance and Strict Dominance
September 23, 2010
ECON 4109H LECTURE 4
Strict Dominance
Denition
In a strategic game with ordinal preferences, player is action ai
strictly dominates ai if
ui (ai , ai ) > ui (ai , ai )
for every p
ECON 4109H
LECTURE 3
NASH EQUILIBRIUM CONTINUED
September 23, 2010
ECON 4109H LECTURE 3
Guess 2/3 of the Average
Each student submits a real number between 0 and 100.
All students whose numbers are closest to 2/3 of the average
evenly split $1. All other