Game Theory Game 2 Dominant Strategies. The Game Mike Shor 2 The Economist SG Time S 0, 50100, 80 G...
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Transcript of Game Theory Game 2 Dominant Strategies. The Game Mike Shor 2 The Economist SG Time S 0, 50100, 80 G...
Game Theory
Game 2
Dominant Strategies
The Game
Mike Shor2
The Economist
S G
TimeS 0 , 50 100 , 80
G 60 , 0 60 , 100
The Game
Mike Shor3
The Economist
S G
TimeS 0 , 50 100 , 80
G 60 , 0 60 , 100
G is “safe” for Time S is better for Time if the Economist is
likely to pick G
The Economist
Mike Shor4
The Economist
S G
TimeS 0 , 50 100 , 80
G 60 , 0 60 , 100
In the role of The Economist: 88% selected G
Time
Mike Shor5
The Economist
S G
TimeS 0 , 50 100 , 80
G 60 , 0 60 , 100
In the role of Time: Only 28% selected S
Rationality & Common Knowledge
Mike Shor6
The Economist
S G
TimeS 0 , 50 100 , 80
G 60 , 0 60 , 100
Rationality: If you have a dominant strategy, play it Doesn’t matter what opponent might do!
Rationality & Common Knowledge
Mike Shor7
The Economist
S G
TimeS 0 , 50 100 , 80
G 60 , 0 60 , 100
Common Knowledge: Others will use their dominant strategy
88% did! But …
Rationality & Common Knowledge
Mike Shor8
Common Knowledge: Others will use their dominant strategy
(usually) Ryan earned 0
The Economist
S G
TimeS 0 , 50 100 , 80
G 60 , 0 60 , 100
Rationality & Common Knowledge
Mike Shor9
Common Knowledge: Others will use their dominant strategy
(usually) Tim earned 0
The Economist
S G
TimeS 0 , 50 100 , 80
G 60 , 0 60 , 100
Why Play a Dominated Strategy?
Mike Shor10
“I am in competition” “I am taking someone down with me” “I lose 30, but they lose 100” “Huh? I was confused”
S G
S 0 , 50 100 , 80
G 60 , 0 60 , 100
Historical Data
Mike Shor11
Rationality (Economist editors) Vanderbilt: 90% pick Grenada Rutgers: 92% pick Grenada UConn: 90% pick Grenada
Common Knowledge (Time editors) Vanderbilt: 56% pick Scandal Rutgers: 56% pick Scandal UConn: 48% pick Scandal
Future Data
Mike Shor12