EC260 Lecture 18: Lecture #18
Document Summary
Ec260 lecture #18: game theory minor points. *final exam will cover chapters 5, 8-11, 13 (6 chapters) *40 mc (60%) and 2 short answer questions (40%) *short answer questions: oligopoly (ch 9 collusion not the other one ) and oligopoly (ch 10) Table 14. 2: eliminate first column gives you a 2x2 payoff matrix, nash equilibrium = Game trees example: strategy set for player 1: {l, r, strategy for player 2, what to do when p1 plays l, what to do when p1 plays r, strategy set for player 2: {ll, lr, rl, rr} 2,2: every game in extensive form can be converted into normal form, exponential growth in number of strategies. Nep and incredible threats: nep: 3,1 and 3,1, play java no matter what is not credible for mozilla incredible threat: 2,2 if microsoft plays . net, then . net is better for mozilla than java.
