the ability to diagnose, understand, and manage emotional cues.
have a high perception of ethical leadership.
I am an effective team member with a high perception of ethical standards.
Being a respectable team member is critical for your team, understandi
Problem Set 4: Repeated Games
This assignment is to be completed only after you have finished playing the Prisoners
1. Consider the following modified prisoners dilemma:
Problem Set 3: OPEC Strategy Memo
This assignment is to be completed only after you have finished playing the OPEC game.
The purpose of this memo is for each country to analyze concisely but thoroughly the
strategy they pursued in the game and the rationa
Problem Set 2
This assignment is to be completed only after you have finished playing the McCainSchumer game.
Important information for answering Problem #2 questions:
For questions 1 and 2, you can either use graphs, excel spreadsheets or calculus to
Problem Set #6 Questions
This problem set should only be completed after youve finished playing the Pricing on
the Internet game.
Suppose that the total number of competing firms is 8.
1. Demonstrate that the law of one price, i.e. all firms charging the
Mixed Strategies and Expected Payoffs
Mixing: The idea
Nash Equilibria in Rock-Scissors-Paper?
Circle method doesnt turn up anything
In circled cells, i doesnt want to change given what j does.
.and j doesnt want to change given that i knows what j is
Sequential move games
and the extensive form
Timing matters in strategic interaction
Strategic form assumes strategy choices are simultaneous
But sometimes sequence of choice is strategically crucial
A simple game:
Harry has $1. He ca
Models, Rational Choice,
and Strategic Form Games
Purpose of Models in Social Science
Models: What and Why?
A model is a stylized, abstract depiction of how an
outcome or result is determined
Models specify logical relations between conditions
A Folk Theorem for Infinitely Repeated Games
Feasible payoffs in repeated games
Many ways to get cooperation in NE/SPNE
Grim Trigger and Tit for Tat both sustain cooperation
as do others
Key point is not about the specific strategies that sustain an
Applications of Nash Equilibrium
Collective action games
Collective action games
A collective action game: some strategy profiles promote
the collective interest of players, others undermine it
Stag hunt, PD, and contributions game all have a
Cooperation in the Infinitely Repeated PD
Non-cooperation is always an equilibrium in repeated PD
Finitely repeated PD
Recall from quiz
Repeated T < times.
Defect in T ; no future punishment from it
Implies behavior in period T 1 has no effect on future
Subgame perfect Nash equilibrium
and backward induction
Equilibrium in sequential games
Sometimes sequence of choice is strategically crucial
A simple game (from previous lecture):
Harry has $1. He can either keep it, ending the game,
Applications of SPNE:
Imperfect Information, Crisis Bargaining,
A crisis bargaining game
A Contested Strip of Land
States A and B argue over a parcel of land
They can settle their disagreement with war or diplomacy
Infinitely repeated games:
payoffs and strategies
The rationale for modeling with infinite repetition
Finite repetition of games can be unrealistic
Last quiz: 2x repeated PD.all defect every period in
Idea: in final period, pledges to cooper
Applications of SPNE: Voting in agendas
Where to eat?
William, Aidan, and Collin have to decide where to go for
Group Choices: Nopalito, Little Star, Five Guys, cfw_N, L, F
Preferences over group choices:
W: F N L
A: L F N
Question the StaHaas Quo
The game tree assumes Coors suffers significant damage due to lost
If AB chooses to build, Coors will run