The Prisoner’s Dilemma. 1 year 0 years 10 years 0 years 5 years Confess Stonewall Player 1 Confess Stonewall Player 2.

Slides:

Advertisements

Similar presentations

PowerPoint Slides by Robert F. BrookerCopyright (c) 2001 by Harcourt, Inc. All rights reserved. Strategic Behavior Game Theory –Players –Strategies –Payoff.

Advertisements

Chapter 11—possible test questions:

Chapter 10 Strategic Choice in Oligopoly, Monopolistic Competition, and Everyday Life Odd-numbered Qs.

• You have an economics test on Monday.

Kaleb LeFevre & Megan Garrison Either-Or Fallacy.

Support For Morality As A Social Contract

ECON 102 Tutorial: Week 8 Ayesha Ali office hours: 8:00AM – 8:50AM tuesdays LUMS.

NON - zero sum games.

Game Theory S-1.

APPENDIX An Alternative View of the Payoff Matrix n Assume total maximum profits of all oligopolists is constant at 200 units. n Alternative policies.

Chapter 10 Game Theory and Strategic Behavior

Chapter 6 Game Theory © 2006 Thomson Learning/South-Western.

Chapter 7 McGraw-Hill/IrwinCopyright © 2010 The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 6 Game Theory © 2006 Thomson Learning/South-Western.

Game Theory Advertising Example 1. Game Theory What is the optimal strategy for Firm A if Firm B chooses to advertise? 2.

Game Theory. “If you don’t think the math matters, then you don’t know the right math.” Chris Ferguson 2002 World Series of Poker Champion.

Game Theory. Games Oligopolist Play ▫Each oligopolist realizes both that its profit depends on what its competitor does and that its competitor’s profit.

Do We Need a Philosophical Account of Human Rights? Rorty ER 11, Gov E-1040 Spring 2012.

Chapter 11 Game Theory and the Tools of Strategic Business Analysis.

A bank robbery has occurred. Two armed men have been apprehended In the vicinity of the bank. Pamela Leutwyler.

Prisoner’s Dilemma. The scenario In the Prisoner’s Dilemma, you and Lucifer are picked up by the police and interrogated in separate cells without the.

Games People Play. 8: The Prisoners’ Dilemma and repeated games In this section we shall learn How repeated play of a game opens up many new strategic.

Chapter 6 © 2006 Thomson Learning/South-Western Game Theory.

Pemberton’s Dilemma.

Econ 2610: Principles of Microeconomics Yogesh Uppal

The Demand for Public Goods Frederick University 2014.

The Prisoner’s Dilemma -Both arrested during botched bank robbery. -Kept in separate cells – NO COMMUNICATION. -Offered separate deals if they confess.

Eponine Lupo.  Game Theory is a mathematical theory that deals with models of conflict and cooperation.  It is a precise and logical description of.

Slide 1 of 13 So... What’s Game Theory? Game theory refers to a branch of applied math that deals with the strategic interactions between various ‘agents’,

Ethics System of moral principles governing the appropriate conduct for a person or group.

Other Two-Person Decision Situations Not all social decisions have the same structure as the Prisoners’ Dilemma. It is important to analyze each case because.

An introduction to game theory Today: The fundamentals of game theory, including Nash equilibrium.

An introduction to game theory Today: The fundamentals of game theory, including Nash equilibrium.

Game Applications Chapter 29. Nash Equilibrium In any Nash equilibrium (NE) each player chooses a “best” response to the choices made by all of the other.

An introduction to game theory Today: The fundamentals of game theory, including Nash equilibrium.

Starbucks, Beating The Prisoners Dillema Brooke Hatcher Econ 202 April 28 th, 2012.

Game Theory, Strategic Decision Making, and Behavioral Economics 11 Game Theory, Strategic Decision Making, and Behavioral Economics All men can see the.

A Game-Theoretic Approach to Strategic Behavior. Chapter Outline ©2015 McGraw-Hill Education. All Rights Reserved. 2 The Prisoner’s Dilemma: An Introduction.

© 2005 Pearson Education Canada Inc Chapter 15 Introduction to Game Theory.

Dynamic Games of complete information: Backward Induction and Subgame perfection - Repeated Games -

Game theory -Another approach to decision- making By Liu Jjin and Zhang Yixiao.

McGraw-Hill/Irwin Copyright  2008 by The McGraw-Hill Companies, Inc. All rights reserved. GAME THEORY, STRATEGIC DECISION MAKING, AND BEHAVIORAL ECONOMICS.

SES SECONDARY 3. 2 PERSPECTIVES: 1. CLASSICAL ECONOMISTS Stigler: “when self-interest and ethical values with wide verbal allegiances are in conflict,

Based on the TED talk by Sam Harris Sanmit Narvekar CS 301.

Imperfect Competition: A Game-Theoretic Approach

Chapter 12 - Imperfect Competition: A Game-Theoretic Approach Copyright © 2015 The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 5 Game Theory and the Tools of Strategic Business Analysis.

Public Policy Analysis MPA 404 Lecture 24. Previous Lecture Graphical Analysis of Tariff and Quota Game Theory; The prisoner's Dilemma.

ECONOMICS IRENE PINI IRENE PINI classe LMG/01 Facoltà di Giurisprudenza Università degli studi di Macerata.

What games do economists play? To see more of our products visit our website at Tom Allen, Head of Economics, Eton College.

KRUGMAN'S MICROECONOMICS for AP* Game Theory Margaret Ray and David Anderson Micro: Econ: Module.

Chapter 10: Games and Strategic Behavior

Lecture 5 Introduction to Game theory. What is game theory? Game theory studies situations where players have strategic interactions; the payoff that.

GLOBAL ECONOMICS (International Trade) Dr. Andrew L. H. Parkes “A Macroeconomic Understanding for use in Business” Day 18 卜安吉.

1 What is Game Theory About? r Analysis of situations where conflict of interests is present r Goal is to prescribe how conflicts can be resolved 2 2 r.

Lecture 12. Game theory So far we discussed: roulette and blackjack Roulette: – Outcomes completely independent and random – Very little strategy (even.

Normal Form Games, Normal Form Games, Rationality and Iterated Rationality and Iterated Deletion of Dominated Strategies Deletion of Dominated Strategies.

Game tree search Thanks to Andrew Moore and Faheim Bacchus for slides!

UUCF Summer RE 2011 Brain Glitches Session 4: Prisoner’s Dilemma.

Competition Unit Competition & Ethics. Unit Plan Assignment – Marketing. COMPETITION. Lesson 3 Lesson 3 : Competition and Ethics NOTES Handout The Prisoners.

Prisoners’ Dilemma Scenario: You and an accomplice are arrested on suspicion of committing some nasty crime The District Attorney and the police have been.

Oligopoly. FOUR MARKET MODELS Characteristics of Oligopolies: A Few Large Producers (Less than 10) Identical or Differentiated Products High Barriers.

1 Selfishness in P2P Networks. U C B E R K E L E Y C O M P U T E R S C I E N C E 2 Introduction to Game Theory Prisoner Dilemma Two members A, B of a.

Game Theory Dr. Andrew L. H. Parkes “Economics for Business (2)” 卜安吉.

The Prisoner’s Dilemma or Life With My Brother and Sister John CT.

Chapter 12 Game Theory Presented by Nahakpam PhD Student 1Game Theory.

Why Government?.

Chapter 12 - Imperfect Competition: A Game-Theoretic Approach

Presentation transcript:

The Prisoner’s Dilemma

1 year 0 years 10 years 0 years 5 years Confess Stonewall Player 1 Confess Stonewall Player 2

Prisoner’s Dilemma - You clearly want to get out of this situation with as little jail time as possible. - You have no way to know what your counterpart will decide. - All you know is that Player 2 also will act in whatever way will minimize his or her own jail time.

Prisoner’s Dilemma Imagine you are Player 1. Since your fate is dependent on the choice of Player 2, you debate what Player 2 will do. If Player 2 confesses and you stonewall (remain silent and admit nothing), then you get stuck with 10 years in prison. If Player 2 confesses and you confess, then you get 5 years in prison. If Player 2 stonewalls and you do too, you each get 1 year in prison. If Player 2 stonewalls and you confess, then you will go free. Therefore, no matter what Player 2 decides, the rational thing for you to do is confess, since in each case confessing gets you the lesser time in jail.

Prisoner’s Dilemma However, you must remember that your opponent is just as rational as you are, and should also conclude that confession is the most rational option. Realizing this, you consider that if your opponent confesses, the smart bet is to stonewall and thus become free immediately, leaving your partner to take all the blame.

Prisoner’s Dilemma