国外博弈论课件lecture1.pptVIP

May 19, 2003 73-347 Game Theory--Lecture 1 May 19, 2003 Lecture 1 Static (or Simultaneous-Move) Games of Complete Information Introduction to Games Normal (or Strategic) Form Representation Outline of Static Games of Complete Information Introduction to games Normal-form (or strategic-form) representation Iterated elimination of strictly dominated strategies Nash equilibrium Review of concave functions, optimization Applications of Nash equilibrium Mixed strategy Nash equilibrium Agenda What is game theory Examples Prisoner’s dilemma The battle of the sexes Matching pennies Static (or simultaneous-move) games of complete information Normal-form or strategic-form representation What is game theory? We focus on games where: There are at least two rational players Each player has more than one choices The outcome depends on the strategies chosen by all players; there is strategic interaction Example: Six people go to a restaurant. Each person pays his/her own meal – a simple decision problem Before the meal, every person agrees to split the bill evenly among them – a game What is game theory? Game theory is a formal way to analyze strategic interaction among a group of rational players (or agents) who behave strategically Game theory has applications Economics Politics etc. Classic Example: Prisoners’ Dilemma Two suspects held in separate cells are charged with a major crime. However, there is not enough evidence. Both suspects are told the following policy: If neither confesses then both will be convicted of a minor offense and sentenced to one month in jail. If both confess then both will be sentenced to jail for six months. If one confesses but the other does not, then the confessor will be released but the other will be sentenced to jail for nine months. Example: The battle of the sexes At the separate workplaces, Chris and Pat must choose to attend either an opera or a prize fight in the evening. Both Chris and Pat know the following: Both would like t