Extensive Form Games. Econ 171. Reminder: Course requirements. Class website Go to economics departmen t home page. Under Links, find Class pages, then click on Econ 171 Textbook: Games, Strategies, and Decision Making by Joseph E. Harrington, Jr.
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Describe the Matching Pennies game that we discussed on Tuesday in extensive form notation and also in strategic form notation.
Do you have a working i>clicker with you?
Make a two-by-two table with one row for each strategy that player 1 could choose and one column for every strategy that player 2 could choose.
Enter payoffs to players 1 and 2 in appropriate spots.
4 Possible Strategies for Player 1 :
What are they?
2 Possible Strategies for Player 2:
What are they?
James Dean story.
Alternatively—Two animals both want a resource. Each has two possible strategies.
Fight or give up. A fight is very bad for both of them. How do we make an interesting game of this?
Alice and Bob love to be together, but they don’t agree about where.
Alice loves opera.
Bob loves fights.
Each would rather be together at less preferred event than to be apart, but each would prefer favorite event.
Two firms each choose quantity.
Price is lower the greater is total output.
Profits of a firm are price times its own quantity