DIR Return Create A Forum - Home
---------------------------------------------------------
EC901 Micro
HTML https://warwickec901micro.createaforum.com
---------------------------------------------------------
*****************************************************
DIR Return to: Any Other Business
*****************************************************
#Post#: 18--------------------------------------------------
Lecture 6, Part I (Game theory)
DIR By: ecplgq
Date: November 19, 2012, 5:50 am
---------------------------------------------------------
Hi,
I had a minor clarification points from the first set of lecture
notes on Game theory which I was hoping one of you could help me
figure out?
1) [Part I, slides 12-15] EX –why does P(1) = 0 and not 1? (Is
it because looking at it in terms of probability of getting
number 1 when opponent does not?)
Thanks
#Post#: 19--------------------------------------------------
Re: Lecture 6, Part I (Game theory)
DIR By: Julia.Wirtz
Date: November 19, 2012, 1:03 pm
---------------------------------------------------------
Hi,
I'm really sorry, but I can't see what you are referring to in
the slides. You mean the example on dominance, right? It
compares 2 possible strategies for player 1 (row player)
1. play T with probability 1/2, play M with probability 1/2
2. always play B
Then the payoffs of both strategies are compared for the actions
of player 2 (column player)
a) if P2 plays L: strategy 1 gives expected payoff 3/2, strategy
2 gives 1 -> strategy 1 is better
b)if P2 plays L: strategy 1 gives 3/2, expected payoff strategy
2 gives 1 -> strategy 1 is better
=> strategy 1 is ALWAYS better ==> strategy 1 DOMINATES strategy
2
I hope this helps
#Post#: 36--------------------------------------------------
Re: Lecture 6, Part I (Game theory)
DIR By: laura.sochat
Date: December 2, 2012, 10:53 am
---------------------------------------------------------
Hey!
I had the same question so went to ask Abhinay about it and it
is indeed 1 and not 0 :)
*****************************************************
Page 1 of 1