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Game Theory

Game Theory. Game 2 Dominant Strategies. The Game. The Game. G is “ safe ” for Time S is better for Time if the Economist is likely to pick G. The Economist. In the role of The Economist: 88% selected G (across both sections). Time. In the role of Time: Only 47% selected S.

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Game Theory

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  1. Game Theory Game 2 Dominant Strategies

  2. The Game

  3. The Game • G is “safe” for Time • S is better for Time if the Economist is likely to pick G

  4. The Economist • In the role of The Economist: • 88% selected G (across both sections)

  5. Time • In the role of Time: • Only 47% selected S

  6. Rationality & Common Knowledge • Rationality: • If you have a dominant strategy, play it • Doesn’t matter what opponent might do!

  7. Rationality & Common Knowledge • Common Knowledge: • Others will use their dominant strategy • 88% did! • But …

  8. Rationality & Common Knowledge • Common Knowledge: • Others will use their dominant strategy • (usually) • Tyler G. earned 0

  9. Rationality & Common Knowledge • Common Knowledge: • Others will use their dominant strategy • (usually) • Amina & Roberto earned 0

  10. Why Play a Dominated Strategy? • “I am in competition” • “I am taking someone down with me” • “I lose 30, but they lose 100” • “Huh? I was confused”

  11. Historical Data • Rationality (Economist editors) • Vanderbilt: 90% pick Grenada • Rutgers: 92% pick Grenada • UConn: 91% pick Grenada • Common Knowledge (Time editors) • Vanderbilt: 56% pick Scandal • Rutgers: 56% pick Scandal • UConn: 46% pick Scandal

  12. Future Data

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