Game 2 Dominant Strategies Game Theory Game 2 Dominant Strategies

The Game The Economist S G Time 0 , 50 100 , 80 60 , 0 60 , 100 0 , 50 100 , 80 60 , 0 60 , 100 Mike Shor

The Game G is “safe” for Time S is better for Time if the Economist is likely to pick G The Economist S G Time 0 , 50 100 , 80 60 , 0 60 , 100 Mike Shor

The Economist In the role of The Economist: 89% selected G (all but two) The Economist S G Time 0 , 50 100 , 80 60 , 0 60 , 100 Mike Shor

Time In the role of Time: Only 32% selected S The Economist S G Time 0 , 50 100 , 80 60 , 0 60 , 100 Mike Shor

Rationality & Common Knowledge The Economist S G Time 0 , 50 100 , 80 60 , 0 60 , 100 Rationality: If you have a dominant strategy, play it Doesn’t matter what opponent might do! Mike Shor

Rationality & Common Knowledge The Economist S G Time 0 , 50 100 , 80 60 , 0 60 , 100 Common Knowledge: Others will use their dominant strategy 89% did! But … Mike Shor

Rationality & Common Knowledge The Economist S G Time 0 , 50 100 , 80 60 , 0 60 , 100 Common Knowledge: Others will use their dominant strategy (usually) Tyler earned 0 Mike Shor

Rationality & Common Knowledge The Economist S G Time 0 , 50 100 , 80 60 , 0 60 , 100 Common Knowledge: Others will use their dominant strategy (usually) Tony earned 0 Mike Shor

Why Play a Dominated Strategy? 0 , 50 100 , 80 60 , 0 60 , 100 “I am in competition” “I am taking someone down with me” “I lose 30, but they lose 100” “Huh? I was confused” Mike Shor

Historical Data Rationality (Economist editors) Vanderbilt: 90% pick Grenada Rutgers: 92% pick Grenada UConn: 92% pick Grenada Common Knowledge (Time editors) Vanderbilt: 56% pick Scandal Rutgers: 56% pick Scandal UConn: 46% pick Scandal Mike Shor

Future Data Mike Shor