Lecture 5 game theory models what

What is game theory

What is the difference between simultaneously and sequentially played fames

Example of simultaneously played games: normal/strategic form

Example of sequentially played fame

Extensive form

What is a dominated strategy

A strategy is dominated if it generates lower payoffs, whatever the opponent strategy

• strict and weak dominance

What is an equilibrium in game theory term

A profile of strategies for all players

Example of a dominant strategy equilibrium

Example of a Nash equilibrium strategy and what is it

What is the best response analysis

What is the notations for players and actions in simultaneously played games Normal/strategic form

What is the notation for rules of the game

What is a node terminal node branch and path

Key assumptions

What is the dominant strategy

B IS dominant t is dominating strictly

What is the dominant equilibrium

1,1

Is there a Nash equilibrium in pure strategies

No

Find NE in sequential games

Solution stop in game 1