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Bayes rule
Treating probability as a logic, Thomas Bayes defined the following: Pr(X|Y)=Pr(Y|X)Pr(X)/Pr(Y) For example, probability that the weather was bad given th
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Rollback
Rollback (often referred to as backward induction) is an iterative method for solving finite in depth kind or sequential games. First, one determines the optima
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Extraneous estimates
Extraneous Estimates If some parameters are identified, while others are not and there exists information on their value from other (extraneous) sources, th
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Perfect nash equilibrium
Perfect Nash equilibrium Two students prepare their homework assignment together for a course. They both enjoy getting high grade for their assignment, but
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Tit for tat
A type of trigger strategy sometimes applied to the repeated Prisoner's Dilemma during which a player responds in one amount with identical action her opponent
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Consolidation
For the section on dynamic games of competition, you can begin by asking if anyone in the class has played competi- tive tennis (club or collegiate or better);
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sub game excellent nash equilibriu
A sub game excellent Nash equilibrium is an equilibrium such that players' methods represent a Nash equilibrium in each sub game of the initial game. it should
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Zero sum
A zero add game may be a special case of a continuing add game during which all outcomes involve a add of all player's payoffs of zero. Hence, a gain for one pa
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Sequential game
A sequential game is one during which players build choices (or choose a strategy) following an exact predefined order, and during which a minimum of some playe
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Two player problem of points set up - ga...
a) Show that A counting proof could be fun(?). But any old proof will do. (Note that the coefficients (1,2,1) in the above are just the elements of t
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Game playing in class-equilibrium payoff...
(a) Equilibrium payoffs are (1, 0). Player A’s equilibrium strategy is S; B’s equilibrium strategy is “t if N.” For (a): Player A has two strategie
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Combining simultaneous and sequential mo...
Combining Simultaneous and Sequential Moves The material in this chapter covers a variety of issues that require some knowledge of the analysis of b
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Simultaneous game
A simultaneous game is one during which all players build choices (or choose a strategy) while not information of the methods that are being chosen by different
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Determine the bayesian nash equilibrium ...
Stanley is auctioning an item that he values at zero. Betty and Billy, the two potential buyers, each have independent private values which are drawn from a uni
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Prisoners'' dilemma scenario
Scenario Two conspirators are arrested and interrogated separately. If one implicates the opposite, he might go free whereas the opposite receives a life sen
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