ECF2731 Lecture Notes - Lecture 10: Repeated Game, Game Players, Normal-Form Game
21 Jun 2019
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Document Summary
Understand and recognize the various processes involved in investment decision making. Recognize and evaluate the various theories of the organisation. Zero-sum game: offsetting gains/losses. (one gains & other loses same amount) Positive sum game: potential for mutual gain. Games are analysed using a payoff matrix. One-shot game: interaction between players occurs only once. Repeated game: ongoing interaction between players occurs. "it is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest. " neither intends to promote public interest" "by pursuing his own interest he frequently promotes that of society" Rational individual behaviour can give suboptimal group result. Dominant strategy gives best result regardless of moves by other players. Secure strategy gives best result assuming the worst possible scenario. Prisoner"s dilemma roadmap: we apply "tools": Payoffs: of "players" (individuals, companies , to identify dominant and secure strategies.
