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Help, game theory stuff

UncleWai

UncleWai

Diamond Member
Damn, I am tutoring for introduction to Microeconomics,
for some reason the instructor of this class decides to put game theory into the class.
I have learned the prisoner's dilemma before.
But I really don't know how to put the answers in terms of Nash Equilibrium.
Can anyone help me out?
Question
 
Finding Nash Equilibria is what you've been doing all along. To be a Nash Equilibrium just means no one can gain by changing their position...In your example:

..........L..........C..........R
T......4, 4......3, 1......3, 3
M.....3, 2.......1, 5......2, 4
B.....2, 0.......0, 2......4, 3

if Top picks C and Left picks B, Top can gain by switching to R and Left can gain by switching to T. Every other decision pair has at least one person who can gain by switching except for (T, L) so there's your pure NE

The mixed strategy would be [(100%, 0, 0),(100%, 0, 0)]

...although I wouldn't take my word for it as I've been out of school and away from micro for two years now
 
just get the students talking about A Beautiful Mind and how hot Jennifer Connelly is, they'll forget all about the assignment.
 
Originally posted by: Yossarian
just get the students talking about A Beautiful Mind and how hot Jennifer Connelly is, they'll forget all about the assignment.
Click to expand...

And give bonus points if one of your students says "ass to ass"
 
women's basketball team talking about Jennifer Connelly 😵?
Anyway, I got the answer, I went to the game theory course homepage from my econ department and read about it.

Actually we had to eliminate the dominated strategies, which are M and C.
So we are left with a 2x2 box.

Here's a question I want to ask about my interpretation.
To find the mixed strategy,
I want to find a probability C* to calculate the difference between two outcomes?
So If person A choose T, he will either get 4 (if B chooses L), or 3 (if B chooses R)
so the answer is E(T) = 4-C* (where if C=0--> 4 and C=1-->3)
E(B) = 4-2C*
Then solve for C*?
So C* is the probability I should choose what? T?
 
Game Theory is interesting stuff once you get into it. The most you will probably see in that class is your basic 2x2 grid and find the Nash equillibrium.
Simply put: If both players are happy to stay in one particular box, it is a Nash equillirium. IE: If they both like the top right, and moving from that position is not desired for either player. Both players can not talk to each other either, they don't know what the other chooses. You can also have more than one Nash equillibrium.

 
Game Theory is THE class I want to take for my Major, but the seniors filled up all the slots before I get a chance to register.

 
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