平狄克微观经济学Game Theory and Competitive Strategy.ppt

Chapter 13 Chapter 13 Game Theory and Competitive Strategy Topics to be Discussed Gaming and Strategic Decisions Dominant Strategies The Nash Equilibrium Revisited Repeated Games Topics to be Discussed Sequential Games Threats, Commitments, and Credibility Entry Deterrence Bargaining Strategy Auctions Gaming and Strategic Decisions Game is any situation in which players (the participants) make strategic decisions Ex: firms competing with each other by setting prices, group of consumers bidding against each other in an auction Strategic decisions result in payoffs to the players: outcomes that generate rewards or benefits Gaming and Strategic Decisions Game theory tries to determine optimal strategy for each player Strategy is a rule or plan of action for playing the game Optimal strategy for a player is one that maximizes the expected payoff We consider players who are rational – they think through their actions Gaming and Strategic Decisions “If I believe that my competitors are rational and act to maximize their own profits, how should I take their behavior into account when making my own profit-maximizing decisions?”(Text, p. 474) Noncooperative vs. Cooperative Games Cooperative Game Players negotiate binding contracts that allow them to plan joint strategies Example: Buyer and seller negotiating the price of a good or service or a joint venture by two firms (i.e., Microsoft and Apple) Binding contracts are possible Noncooperative vs. Cooperative Games Noncooperative Game Negotiation and enforcement of binding contracts between players is not possible Example: Two competing firms, assuming the other’s behavior, independently determine pricing and advertising strategy to gain market share Binding contracts are not possible Noncooperative vs. Cooperative Games “The strategy design is based on understanding your opponent’s point of view, and (assuming your opponent is rational) deducing how he or she is likely to respond to your actions.” (Text, p. 475) Gaming and