Bargaining (O 16, OR 7)
We solved an extension of the ultimatum game to two periods and alternating offers:
A pie of size 1 is to be divided between two players.
Player 1 proposes a division x
The Ultimatum game
In the Ultimatum Game, Player 1 gets $100 and has to offer an allocation of the amount between
Player 2 and himself. That is, he chooses x[0,100] or an integer xcfw_0,1,2,.,100 and offers to give
Extensive Form Games with Perfect Information
Informal overview of the main ideas -
We would like to be able to analyze situations in which decisions are not made simultaneously.
For example, one firm decides
Maxminimization with mixed strategies
Consider a strategic game <N, (Ai), (ui)> and assume vNM preference.
A maxmin mixed strategy of player i is a mixed strategy that solves the problem:
max iAi min iAi Ui(i, i)
Evolutionary Stable Strategy (ESS)
Members of a single population (people, animals) occasionally interact
Actions taken: Inherited mode of behavior or mutation
Strategies: General notations for n-
Each player i can randomize among all her actions.
A mixed strategy of player i is given by i (Ai),
(Ai) is the set of all probability
We saw that in the Odd/Even game (matching pennies), there is no pure strategy Nash equilibrium.
But if each player plays each action with probability 0.5, no one has incentive to deviate
The Colonel Blotto Game
o You are a commander of an army during wartime, which is about to do battle with the
o Each commander decides how to allocate his 120 troops across 6 battlefields
o In a particular battlefield, the commander who assign