Summary: Games And Information An Introduction To Game Theory  9781405136662  Eric Rasmusen
 This + 400k other summaries
 A unique study and practice tool
 Never study anything twice again
 Get the grades you hope for
 100% sure, 100% understanding
Read the summary and the most important questions on Games and Information An Introduction to Game Theory  9781405136662  Eric Rasmusen

1 The rules of the game

1.1 Definitions
This is a preview. There are 1 more flashcards available for chapter 1.1
Show more cards here 
What are the essential elements of a game?
players, actions, payoﬀs, andinformation— PAPI 
1.2 Dominated and dominated strategies: the prisoners dilemma

Describe a dominated strategy
The strategy sd i is a dominated strategy if it is strictly inferior to some other strategy no matter what strategies the other players choose, in the sense that whatever strategies they pick, his payoﬀ is lower with s 
Describe a dominant strategy
The strategy s∗ i is a dominant strategy if it is a player’s strictly best response to any strategies the other players might pick, in the sense that whatever strategies they pick, his payoﬀ is highest with s∗ 
Describe the prisoners dilemma
Whenever you observe individuals in a conﬂict that hurts them all, your ﬁrst thought should be of the Prisoner’s Dilemma. 
Describe a cooperative game
A cooperative game is a game in which the players can make binding commitments, as opposed to anoncooperative game, in which they cannot. 
1.3 Iterated dominance: the battle of the bismarck see

Describe a weakly dominated strategy
Strategy s0 i is weakly dominated if there exists some other strategy s00 i for player i which is possibly better and never worse, yielding a higher payoﬀ in some strategy proﬁle and never yielding a lower payoﬀ. 
Describe an iterated dominance equilibrium
An iterated dominance equilibrium is a strategy pro ﬁle found by deleting a weakly dominated strategy from the strategy set of one of the players, recalculating to ﬁnd which remaining strategies are weakly dominated, deleting one of them, and continuing the process until only one strategy remains for each player. 
Describe a zerosum game
A zerosum game is a game in which the sum of the payoﬀs of all the players is zero whatever strategies they choose. A game which is not zerosum is nonzerosum game or variable sum. 
1.4 Nash equilibrium
This is a preview. There are 1 more flashcards available for chapter 1.4
Show more cards here 
When is there a nash equilibrium
The strategy pro ﬁle s∗ is a Nash equilibrium if no player has incentive to deviate from his strategy given that the other players do not deviate. 
Describe a battle of the sexes game
The third game we will use to illustrate Nash equilibrium is the Battle of the Sexes, a conﬂict between a man who wants to go to a prizeﬁght and a woman who wants to go to a ballet. While selﬁsh, they are deeply in love, and would, if necessary, sacriﬁce their preferences to be with each other.
 Higher grades + faster learning
 Never study anything twice
 100% sure, 100% understanding
Topics related to Summary: Games And Information An Introduction To Game Theory

Perfect, certain, symmetric and complete information

Moral hazard: hidden actions  categories of asymetric information models

Auctions  optimal strategies under different rules in private value actions

Articles  Holt  Dellavigna

Article  Rabin

Articles  Camerer

Articles  Eckel

Articles  McKelvey

Articles  Dodonova

Article  akerlof (market for lemon)

Article  Fehr (fairnes prevent market clearing)

Article  Frey: motivation as a limit pricing

Article  Frey: shirking or work morale

Article  akerlof: economcis and identity

Articles  Levit and list

Articles  Fehr and schmidt: a theory of fairness