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GAME 2 The Tire Story
Another game that we have successfully played in the first lecture is based on the “We can’t take the exam; we had a flat tire”. Even if the students have read ahead, the discussion in the text makes it clear that there is no obvious focal answer to the question,“Which tire?” Bring along a stack of index cards and, when you are ready to play this game, hand one card to each student. After relating the story, ask each student to pretend he is one of those taking the exam and must answer the tire question on the card. Collect the cards and tabulate the answers on the board. Start a discussion about why different students chose different tires; focus on the difficulties of obtaining a focal equilibrium when players have different backgrounds or concerns. You can also relate the discussion back to the material in the text regarding the necessity of being prepared to face a strategically savvy opponent at any time.
GAME 5 All-Pay Acution of $10 Everyone plays. Show the students a $10 bill, and announce that it is the prize; the known value of the prize guarantees that there is no winer’s
Two people are involved in a dispute. Person 1 does not know whether person 2 is strong or weak; she assigns probability to person 2 being strong. Person 2 is fully informed. Each
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Leadership in an Oil Production Game Students can be broken into pairs to play this game once, witheach student's representing one country; then each shouldswitch partners and
Ronaldo (Brazil) kicks a penalty against Casillas (Spain) in the 2006 World Cup nal. Sup- pose that Ronaldo can kick the ball to Casillas' upper left (UL), lower left (LL), upper r
A sequential game is {one of|one among|one in all|one amongst|one in each of} excellent data if just one player moves at a time and if every player is aware of each action of the p
Eighteenth century British mathematician who recognized a method for probabilistic mathematical inference. His Bayes Theorem, published posthumously, treats probability as a logic.
Limitations of game theory in finance
Rules of Snake Eyes (small variation on game called Craps in USA) Player rolls two dice. On the first roll if the total of the dice is 2 (snake eyes): player wins and rece
Equilibrium payoffs are (4, 5). Player A’s equilibrium strategy is “S then S if n and then N if n again.” Player B’s equilibrium strategy is “n if S and then n if S again and then
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