micro-chapter12-13-new.pdfVIP免费

Chapter12GameTheoryTopicstobeDiscussedGamingandStrategicDecisionsDominantStrategiesTheNashEquilibriumRevisitedRepeatedGamesTopicstobeDiscussedSequentialGamesThreats,Commitments,andCredibilityEntryDeterrenceGamingandStrategicDecisionsGameisanysituationinwhichplayers(theparticipants)makestrategicdecisions◦Ex:firmscompetingwitheachotherbysettingprices,groupofconsumersbiddingagainsteachotherinanauctionStrategicdecisionsresultinpayoffstotheplayers:outcomesthatgeneraterewardsorbenefitsSomeApplicationsofGameTheoryThestudyofoligopolies(industriescontainingonlyafewfirms)Thestudyofcartels;e.g.OPECThestudyofexternalities;e.g.usingacommonresourcesuchasafishery.Thestudyofmilitarystrategies.WhatisaGame?Agameconsistsof◦asetofplayers◦asetofstrategiesforeachplayer◦thepayoffstoeachplayerforeverypossiblelistofstrategychoicesbytheplayers.GamingandStrategicDecisionsGametheorytriestodetermineoptimalstrategyforeachplayerStrategyisaruleorplanofactionforplayingthegameOptimalstrategyforaplayerisonethatmaximizestheexpectedpayoffWeconsiderplayerswhoarerational–theythinkthroughtheiractionsGamingandStrategicDecisions“IfIbelievethatmycompetitorsarerationalandacttomaximizetheirownprofits,howshouldItaketheirbehaviorintoaccountwhenmakingmyownprofit-maximizingdecisions?”Noncooperativevs.CooperativeGamesCooperativeGame◦PlayersnegotiatebindingcontractsthatallowthemtoplanjointstrategiesExample:Buyerandsellernegotiatingthepriceofagoodorserviceorajointventurebytwofirms(i.e.,MicrosoftandApple)BindingcontractsarepossibleNoncooperativevs.CooperativeGamesNoncooperativeGame◦NegotiationandenforcementofbindingcontractsbetweenplayersisnotpossibleExample:Twocompetingfirms,assumingtheother’sbehavior,independentlydeterminepricingandadvertisingstrategytogainmarketshareBindingcontractsarenotpossibleAnExampleofaTwo-PlayerGameThisisthegame’spayoffmatrix.PlayerBPlayerAPlayerA’spayoffisshownfirst.PlayerB’spayoffisshownsecond.LRUD(3,9)(0,0)(1,8)(2,1)Dominant...