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Game Theory. A tool for modeling strategic interactions. Parts to a Game. A set of players A set of actions available to each player A payoff function that specifies how actions are mapped into payoffs for each player. A Penalty Kick in Soccer. Players = (Kicker, Goalie)
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Game Theory A tool for modeling strategic interactions
Parts to a Game • A set of players • A set of actions available to each player • A payoff function that specifies how actions are mapped into payoffs for each player
A Penalty Kick in Soccer • Players = (Kicker, Goalie) • Actions for Kicker - (Kick Left, Kick Right)for Goalie – (Defend Kick Left, Defend Kick Right)
A Penalty Kick in Soccer • Payoffs – Kicker wins if Goalie guesses wrong and looses if Goalie guesses correctly. Goalie payoff is the opposite.
Normal Form Game A table that graphically represents all of the parts to a game.
Normal Form Game A table that graphically represents all of the parts to a game. Players
Normal Form Game A table that graphically represents all of the parts to a game. Actions
Normal Form Game A table that graphically represents all of the parts to a game. Payoffs (row player’s payoff listed first)
Today’s Experiment Get into 8 groups of 3-4 people per group. Communication between groups is not allowed. Your grade is based upon the number of points that your group earns. Your points are the sum of your payoffs from the games. For each game you will be playing against another randomly selected group from the class.
