Ch2 Nash Equilibrium.pptVIP

决策系统 一个决策系统 Ch2 Nash Equilibrium: Theory 2.1 Strategic games Strategic game with ordinal preferences Notice A very wide range of situation may be modeled as strategic games. It is frequently convenient to specify the players’ preferences by given payoff functions that represent them. Time is absent from the model. 2.2 Example: the Prisoner’s Dilemma 2.2.1 Working on a joint project 2.2.2 Duopoly 2.2.3 Other situations modeled as the Prisoner’s Dilemma The arms race Common property Hermaphroditic fish 2.3 Example: Bach or Stravinsky? 2.4 Example: Matching Pennies 2.5 Example: the Stag Hunt 2.6 Nash Equilibrium What actions will be chosen by the players in a strategic game? A rational decision maker chooses the best available action In a game best action for any given player depends on the other players’ actions She must form a belief about the other players’ action On what basis can such a belief be formed? Derived from past experience playing game Pervious involvement in the game 2.7 Examples of Nash Equilibrium 2.8 Best Response Functions 2.8.1 DEFINITION 2.8.2 Using best response function to define a Nash equilibrium 2.8.3 To find a Nash equilibria 2.9 Dominated actions 2.9.1 strict domination 2.9.2 Weak domination 2.10 Symmetric games and symmetric equilibria