Introduction This lecture continues the analysis of normal-form games. We analyze general, non-zerosum games, emphasizing the informal\equation\: Rational Behavior+ Assumptions about Beliefs=Solution Concepts Before we tackle the new material, let us review what we have learned about zerosum
Introduction The theory of extensive games is built upon a key notion, that of sequential rationality, and a key insight, the centrality of off-equilibrium beliefs. The definition of sequential equilibrium brings both to the fore in a straightforward manner, and emphasizes their interrelation
Introduction [Again, by and large, I will follow OR, Chap. 8, so I will keep these notes to a minimum. Review of key definitions Recall our three payoff aggregation criteria: discounting, i.e (u2)≥1>(2 (also recall that the payoff profile corresponding to a stream (ut)is taken to be(1 8)2t18t-u(a)); limit of means
Introduction The notion of subgame perfection is the cornerstone of the theory of extensive games. It embodies its key intuitions-and provides a vivid example of the difficulties inherent in such a theor But, above all, it has proved to be extremely profitable in a variety of applications. More- over, it has spawned a huge theoretical literature which has attempted(often successfully
1. Game Theory Multiperson Decision Theory Zero-Sum games Marciano siniscalchi September 16, 1999 administrative stuff Class: Tue-Thu 10: 40-12: 1021, Room 317, Bendheim. OH, by appointment The big picture Most of you will already have used some of the tools of GT in your core courses You will probably be familiar with the
