Game Theory.ppt

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * Unraveling Mike Shor * 291, 97 take take take take grow grow grow grow 98, 294 297, 99 100, 300 202, 202 97 98 99 100 3, 1 take take take take grow grow grow grow 2, 6 9, 3 4, 12 ??? 1 2 3 4 Unraveling Equilibrium: take , take , take , take , take , … take , take , take , take , take , … Remember: An equilibrium specifies an action at every decision node Even those that will not be reached in equilibrium Mike Shor * Sequential Games You have a monopoly market in every state There is one potential entrant in each state Th