Strategies and Games
Strategies and Games
Theory and Practice
prajit k. dutta
The MIT Press Cambridge, Massachusetts
.
London, England
© 1999 Massachusetts Institute of Technology All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means (including photocopying, recording, or information storage and retrieval) without permission in writing from the publisher. This book was set in Melior and MetaPlus by Windfall Software using ZzTEX and was printed and bound in the United States of America. Library of Congress Cataloging-in-Publication Data Dutta, Prajit K. Strategies and games : theory and practice / Prajit K. Dutta. p. cm. Includes bibliographical references and*…show more content…*

7.2 A Simple Model 7.3 Social Optimality 7.4 The Problem Worsens in a Large Population 7.5 91 91 93 95 96 case studies and the Internet Buffalo, Global Warming, 97 98 99 100 7.6 Averting a Tragedy Summary Exercises C H A P T E R 8 Mixed Strategies 8.1 Deﬁnition and Examples 8.1.1 What Is a Mixed Strategy? 8.1.2 Yet More Examples 8.2 An Implication 8.3 Mixed Strategies Can Dominate Some Pure Strategies 8.3.1 Implications for Dominant Strategy Solution and IEDS 8.4 Mixed Strategies Are Good for Blufﬁng 8.5 Mixed Strategies and Nash Equilibrium 8.5.1 Mixed-Strategy Nash Equilibria in an Example 8.6 103 103 103 106 107 108 109 110 111 113 114 115 116 case study Summary Exercises Random Drug Testing xii Contents C H A P T E R 9 Two Applications: Natural Monopoly and Bankruptcy Law 9.1 Chicken, Symmetric Games, and Symmetric Equilibria 9.1.1 Chicken 9.1.2 Symmetric Games and Symmetric Equilibria 9.2

7.2 A Simple Model 7.3 Social Optimality 7.4 The Problem Worsens in a Large Population 7.5 91 91 93 95 96 case studies and the Internet Buffalo, Global Warming, 97 98 99 100 7.6 Averting a Tragedy Summary Exercises C H A P T E R 8 Mixed Strategies 8.1 Deﬁnition and Examples 8.1.1 What Is a Mixed Strategy? 8.1.2 Yet More Examples 8.2 An Implication 8.3 Mixed Strategies Can Dominate Some Pure Strategies 8.3.1 Implications for Dominant Strategy Solution and IEDS 8.4 Mixed Strategies Are Good for Blufﬁng 8.5 Mixed Strategies and Nash Equilibrium 8.5.1 Mixed-Strategy Nash Equilibria in an Example 8.6 103 103 103 106 107 108 109 110 111 113 114 115 116 case study Summary Exercises Random Drug Testing xii Contents C H A P T E R 9 Two Applications: Natural Monopoly and Bankruptcy Law 9.1 Chicken, Symmetric Games, and Symmetric Equilibria 9.1.1 Chicken 9.1.2 Symmetric Games and Symmetric Equilibria 9.2

Related

- Better Essays
## Quarter # 2 Simulation Marketing Strategies

- 875 Words
- 4 Pages

In real life, the theory cannot provide a straightforward strategy used by the competitor or to be used against the competitor because it is not clear what strategy the competitor has chosen (Li & Yu,2016).

- 875 Words
- 4 Pages

Better Essays - Better Essays
## Game Theory Term Insurance Essay examples

- 1907 Words
- 8 Pages

The insurance industry has long been applying game theory to evaluate whether or not individuals are insurable and determine how much premium to charge them based on their apparent needs. This interaction between the consumer and the insurance company can be characterized as a game because not only are they playing against one another but each party is waging on an outcome more beneficial to them. In a traditional life insurance, there are many variables to consider when utilizing game theory to form a strategy as there are investment components along with complex riders. Thus, in order to keep the game relatively simple, this paper will assume the insurance being considered is term life and use game

- 1907 Words
- 8 Pages

Better Essays - Better Essays
## Game Theory : Essential Strategic Decision Making Essay

- 1715 Words
- 7 Pages

Game theory is essential in strategic decision making. It is a necessary tool or guideline needed for decision making in situations involving interdependence (Thomas & Maurice, 2010). A time in which it was necessary and vital to make some strategic decisions was with the planning and coordinating of my wedding. Likewise, when my husband and I decided to get married, we both had different visions about how the planning process should take place in addition to the size of the budget. Unbeknownst to us, we never envisioned that we would encounter as many challenges in making as many vital decisions as we did.

- 1715 Words
- 7 Pages

Better Essays - Best Essays
## Strategic Interactions Ryanair & Easyjet Don’t Be Blinded by the Price, Sunglasses to See the Whole Picture

- 2242 Words
- 9 Pages

What would Ryanair do? How would easyJet respond? If easyJet assumes that Ryanair is going to increase its frequency of flights from London Heathrow to Hamburg, its best solution would be to raise its frequency as well; so both would earn a profit of £1000. If easyJet would in this case remain with its current flights, Ryanair would make £1000 more profit. If Ryanair chooses its second available strategy namely to continue its current flight rate, easyJets best response would be to raise its frequency as well. On this occasion easyJet would make a profit of £1500 and Ryanair only a profit of £500. This leads to the conclusion that no matter what Ryanairs preferred strategy is, easyJet will do better in increasing its flight frequency. As this game is perfectly symmetric the same solution is given for Ryanair. Their dominant strategy is to increase its flight frequency as well. With having two dominant strategies, there is a Nash equilibrium given for increasing the frequency of flights. The payoffs for each player would be £1000 and there would not be any incentive for them to deviate from this result. It shows that the best strategic decision in this game is given by a solution where no competitor has the incentive to change his strategy given the other competitors’ strategy, here to increase the flight frequency.

- 2242 Words
- 9 Pages

Best Essays - Good Essays
## Equilibrium Is Virtually Useless : An Argument Between The Conceptuality And The Practicality Of Nash Equilibrium

- 1342 Words
- 6 Pages

This is an argument between the conceptuality and the practicality of Nash equilibrium in Economics. To understand it we need to first look into what economics is about, which is the study of social and human interaction and rational decision making quantitatively. Nash equilibrium can act as a tool to provide an insight into such interaction. In the first part of this essay, I am going to evaluate why the statement ‘economics without the concept of Nash equilibrium is conceptually flawed’ is true, by looking into the importance of rationality in economics and the mechanism of the Nash equilibrium. In the second part, I am going to assess why the argument for ‘Economics with the concept of Nash equilibrium is practically useless’ is true

- 1342 Words
- 6 Pages

Good Essays - Best Essays
## Why Strategy Is Difficult?

- 3135 Words
- 13 Pages

Strategy is a social fact and it only exists in certain relationship. Therefore, an effective way to identify it starts from clarifying what it is not. In the context of this research, strategy is neither tactics nor policy.

- 3135 Words
- 13 Pages

Best Essays - Better Essays
## BUS 475 Week 5 Individual Assignment Final Strategic Plan and Presentation Final Version

- 4765 Words
- 20 Pages

Thompson, Arthur A. , Gamble, John E. , & Strickland, A. J. (2006). Strategy: w

- 4765 Words
- 20 Pages

Better Essays - Decent Essays
## Essay On Game Theory

- 738 Words
- 3 Pages

Game Theory was devised in the 1950’s and slowly grew into the field of biology and today it is even used in computers and is one of the most important tool in every field. Game Theory is a psychological theory which usually applies to social conditions, which affect the behavioral and decision making of an individual. This theory is vast and deals with how a group reacts and interact. This theory is used in mostly all major fields such as business, biology, science, logic, computer etc.

- 738 Words
- 3 Pages

Decent Essays - Better Essays
## Final Business Model and Strategic Plan

- 5056 Words
- 21 Pages

Thompson, A. A., Gamble, J. E., & Strickland, A. J. (2006). Strategy: Winning in the

- 5056 Words
- 21 Pages

Better Essays - Decent Essays
## Essay on Microeconomics and the Board Game Monopoly

- 1024 Words
- 5 Pages
- 8 Works Cited

All I ever needed to know about microeconomics I learned from the Hasbro board game Monopoly.

- 1024 Words
- 5 Pages
- 8 Works Cited

Decent Essays - Good Essays
## In this compare and contrast paper I will highlight the differences and commonalities

- 1167 Words
- 5 Pages

Two basic strategies or concepts are found in part three – “Basic Strategy: How to

- 1167 Words
- 5 Pages

Good Essays - Better Essays
## Game Theory : Basic Concepts, History And Models

- 1929 Words
- 8 Pages

In ancient China, during an era known as “Warring States Period”, China was divided and conquered by independent seven warring states. King Wei of Qi, who was the emperor of Qi State, and the general Tian Ji, were both horse racing fans. They always bet heavily on winning and losing. This is just the background of Tian Ji’s horse racing strategy. Now here comes the dilemma. The horses can be divided into three different speed classes: fast, medium and slow. Since the king’s horses are always better than Tian Ji’s, Tian Ji always lose the game. However, Tian Ji can choose the order of the horses to compete. There are three rounds of a race and anyone who wins two rounds can be the final winner.

- 1929 Words
- 8 Pages

Better Essays - Decent Essays
## The Strategic Board Game Diplomacy

- 1099 Words
- 5 Pages

The strategic board game Diplomacy focuses on wars, but more importantly the act of negotiating. The players are responsible for forming strategies by both developing and breaking alliances with their competitors. The game is set in Europe during World War I with most teams beginning with similar resources. Each player competes as an either Austria-Hungary, Turkey, Italy, England, France, Russia, or Germany. With at least three home center game pieces on the board, there are strategic movements in order to control one of the eighteen supply centers. This involves phases of negotiation prior to movement of game piece. There is no factor of luck. The main variable in the game is each team’s ability to convince the others to do what they want. The core game strategy is negotiation.

- 1099 Words
- 5 Pages

Decent Essays - Decent Essays
## Game Theory, Deal or No Deal

- 929 Words
- 4 Pages

From the show 's introduction in December 2005, NBC has had tremendous success with the game show Deal or No Deal. The game show, which was created in the Netherlands, pits acontestant against the mysterious banker. The contestant is trying for the case with $1 million,while the banker 's stated goal is to get the contestant to go home with as little money as possible while also trying to keep the game going for as long as possible. Deal or No Deal is a unique game show in that it takes virtually no skill on the part of the contestant. As long as the contestant can count to 26 (the number of cases), he can play the game. But this lack of skill requirement allows us, as economists, to study how people make decisions in a situation where all

- 929 Words
- 4 Pages

Decent Essays - Satisfactory Essays
## Ultimatum Game Theory

- 263 Words
- 2 Pages

In this paper, the efficiency of the ultimatum game theory was assessed to resolve water conflicts between agricultural and environmental water needs in Zarrinehroud River Basin, northwest of Iran. Irrigated agriculture and its water needs were to be adjusted in order to mitigate the downstream Lake Urmia drying condition. The great need of food production in the region and in the whole country in one hand, and the worsening environmental impacts due to the drying lake, on the other hand, are clearly conflicting issues.

- 263 Words
- 2 Pages

Satisfactory Essays