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
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 Ga
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 cl
ECON 4109H
LECTURE 9
M IXED S TRATEGY E QUILIBRIUM
October 16, 2014
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
ECON 4109H
LECTURE 1
INTRODUCTION TO GAME THEORY
September 15, 2014
Class Outline
An Experiment
What is Game Theory?
Examples of Games
Theory of Rational Choice
An Experiment
Each student submits a nu
ECON 4109H
LECTURE 4
W EAK D OMINANCE AND S TRICT D OMINANCE
October 2, 2014
Strict Dominance
D EFINITION
In a strategic game with ordinal preferences, player is action ai00
strictly dominates ai0 if
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, th
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 pr
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 g
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
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 p
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
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 subm
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 ca
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
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 do
Chapter 2. Nash Equilibrium 5
25.2 Selfish and altruistic social behavior
a. A game that model the situation is shown in Figure 5.1.
Sit Stand
Sit 1, 1 2, 0
Stand 0, 2 0, 0
Figure 5.1 Behavior on a bu