POL208Y1 Lecture Notes - Lecture 5: Microsoft Powerpoint, Strategic Dominance, Coordination Game
13 Dec 2012
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Document Summary
For each action, determined by multiplying the probability and the utility for each possible outcome. It is used to help rank actors" preferences over all outcomes in game theory: game theory: modeling the interaction of decision-makers via strategic games; allows each player to be affected by the expected actions of all players. Actors can improve their respective payoffs only if they can negotiate a simultaneous change in both their strategies. A very stable outcome: coordination game: typified by different, yet non-conflicting preferences. This leads to an individually rational, but collectively suboptimal outcome. In international relations, often said to resemble the features of anarchy, or more specifically of the security dilemma. Dilemma: chicken: a game with two nash equilibria, (swerve, straight) and (straight, No dominant strategy; thus, it is difficult to predict what the opponent will do. Actors want to do the opposite of what the opponent does, in order to avoid the worst possible outcome (straight, straight).
