Ben Polak Econ 159a/MGT522a Fall, 2007
The Grade Game. We played the future(a) game: Without showing your neighbor what you are doing, write pot on a form either the letter or the letter . Think of this as a ` wander bid. We leave behinding randomly coupling your form with one other form. incomplete you nor your pair will ever know with whom you were paired. Here is how rolls may be assigned for this course. If you put and your pair puts , indeed you will learn grade A, and your pair grade C.
if both you and your pair put , past you both will get grade B-. if you put and your pair puts , then you will get grade C, and your pair grade A. if both you and your pair put , then you will both get grade B+.
The achievable choices, or , are called `strategies. The grades | for example, (A,C) | are `outcomes. We can record much(prenominal) information as follows: Outcome Matrix pair me B-,BC, A A, C B+,B+
What system should a rational someone choose in the Grade Game? To answer this, we rst pick up to know what that person cares about: what `payo does each outcome bow for this person. Game theory can not tell us what payo s to assign to outcomes. This depends on the preferences (and moral sentiments?) of the players, not honourable you but also your opponents.
But game theory has a lot to say about how to play the game in one reason payo s are known. Possible payo s: Evil gits. For example, if both player is an evil git, each only fondness about her own grade then (assuming she prefers A to B etc.) the payo s might be as follows: Payo Matrix 1 pair 0; 0 1; 3 3; 1 1; 1
me
What should I choose in this case? If my pair chooses , then my choosing yields me 0 whereas my choosing yields me only 1. If my pair chooses , then my choosing yields me 3 whereas my choosing yields me only 1. So, in either case, my choosing is better. Formally, we say: De nition. My strategy strictly dominates my strategy higher than that from regardless of others choices. if my payo from...If you want to get a full essay, order it on our website: Ordercustompaper.com
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