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Strategic Game
a Strategic Game consists of:
a set of players
for each player, a set of actions
for each player, preferences over the set of action profiles
note:
“time” is absent
all players choose an action simultaneously
once an action is chosen it cannot be changed
Prisoner’s Dilemma
Players: the two suspects
Actions: {Quiet, Fink} for all i
Preferences:
u_1(Fink, Quiet) > u_1(Quiet, Quiet) > u_1(Fink, Fink) > u_1(Quiet, Fink)
u_2(Quiet, Fink) > u_2(Quiet, Quiet) > u_2(Fink, Fink) > u_2(Fink, Quiet)
Battle of the Sexes
coordination game
players want to cooperate, even if each prefers a different outcome
Matching Pennies
“strictly competitive” game
interests of the 2 players are diametrically opposed
Stag Hunt
Players: the hunters
Actions: each player’s set of actions {Stag, Hare}
Preferences: for each hunter the action profile in which they Hare, followed by any profile in which he chooses Stag and at least one other hunter chooses Hare
Notes:
similar to PD except players rather cooperate as long as everyone else is cooperating