Week 7 Flashcards
What is a simultaneous game?
A simultaneous game is a type of game in which both players make their decisions simultaneously without knowing the other player’s choice.
What is strict dominance?
Strict dominance is a concept in game theory where one strategy is always better than another strategy for a player, regardless of the other player’s choices.
What is Nash equilibrium?
Nash equilibrium is a solution concept in game theory where each player is making the best decision they can, given the other player’s choices.
How do you compute a pure strategy equilibrium?
To compute a pure strategy equilibrium, you need to first identify all possible strategies for each player. Then, you need to evaluate the payoffs for each possible combination of strategies and identify the combinations that result in a Nash equilibrium.
How do you compute a mixed strategy equilibrium?
To compute a mixed strategy equilibrium, you need to first identify all possible strategies for each player. Then, you need to evaluate the payoffs for each possible combination of strategies and identify the combinations that result in a Nash equilibrium. In a mixed strategy equilibrium, each player is using a combination of strategies instead of just one pure strategy.
Can a game have more than one Nash equilibrium?
Yes, a game can have more than one Nash equilibrium.
How does strict dominance relate to Nash equilibrium?
Strict dominance is a concept that helps to identify possible Nash equilibria in a game. If a strategy is strictly dominant, it will always be part of a Nash equilibrium, regardless of the other player’s choices.
Can a mixed strategy equilibrium be considered a Nash equilibrium?
Yes, a mixed strategy equilibrium can be considered a Nash equilibrium. In a mixed strategy equilibrium, each player is using a combination of strategies instead of just one pure strategy, and they are making the best decision they can given the other player’s choices.
How do you identify the strategies that are part of a Nash equilibrium?
To identify the strategies that are part of a Nash equilibrium, you need to evaluate the payoffs for each possible combination of strategies and identify the combinations that result in a Nash equilibrium.
Can a game have multiple pure strategy equilibria but no mixed strategy equilibrium?
Yes, a game can have multiple pure strategy equilibria but no mixed strategy equilibrium. This can happen if the payoffs for the different pure strategy combinations are not sufficient to support a mixed strategy equilibrium.
