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Lecture Slides Dixit and Skeath Chapter 3

Lecture Slides Dixit and Skeath Chapter 3. Fig. 3.1 top. Fig. 3.1 bottom. Fig. 3.2. Fig. 3.3. Fig. 3.4 top. Fig. 3.4 bottom. Fig. 3.5. Possible Outcomes:. Player Doesn’t Contribute and Other Two Players Contribute: “4”

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Lecture Slides Dixit and Skeath Chapter 3

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  1. Lecture SlidesDixit and SkeathChapter 3

  2. Fig. 3.1 top

  3. Fig. 3.1 bottom

  4. Fig. 3.2

  5. Fig. 3.3

  6. Fig. 3.4 top

  7. Fig. 3.4 bottom

  8. Fig. 3.5

  9. Possible Outcomes: Player Doesn’t Contribute and Other Two Players Contribute: “4” Player Contributes and One or Both of the Other Players Contribute: “3” Player Doesn’t Contribute and One or None of the Other Players Contribute: “2” Player Contributes but Neither of the Others Contribute: “1”

  10. Fig. 3.6

  11. Strategies A “Strategy” specifies how you would move in all possible situations: Emily has two: C, D Nina has four: CC, CD, DC, DD Talia has sixteen: CCCC, CCCD, CCDC, CCDD, CDCC, CDCD, CDDC, CDDD, DCCC, DCCD, DCDC, DCDD, DDCC, DDCD, DDDC, DDDD

  12. Optimal Strategies Optimal Strategies are those that a player would choose: Talia: DCCD Nina: DC Emily: D The “Equilibrium Path of Play” is the path that is followed when the players play their optimal strategies.

  13. Order Advantage First-mover Advantage: Benefit from committing yourself to an action and forcing other players to adapt Second-mover Advantage: Benefit comes from having the flexibility to respond to the other player’s choices

  14. Fig. 3.7

  15. Fig. 3.8

  16. Fig. 3.9 top

  17. Fig. 3.9 bottom

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