CPO-2002 Lecture Notes - Lecture 3: Subgame Perfect Equilibrium, Microsoft Powerpoint, Nash Equilibrium
Document Summary
Politics: human behavior that involves the use of power or influence. Power: cannot achieve goals without influencing and escaping the influence of others. Game theory: models interaction between two or more actors using formal (math) notation. A(cid:272)tor"s a(cid:271)ilit(cid:455) to a(cid:272)hie(cid:448)e goals/their (cid:272)hoi(cid:272)es depe(cid:374)ds o(cid:374) other a(cid:272)tor"s (cid:272)hoi(cid:272)es (interdependency) Players face decisions at a choice node. Payoff indicates the value of the outcome. Payoffs listed in order or what player moved first. Assu(cid:373)e that pla(cid:455)ers are ratio(cid:374)al (the(cid:455) do (cid:449)hat"s i(cid:374) their (cid:271)est i(cid:374)terest; to (cid:373)a(cid:454)i(cid:373)ize their payoff based on their knowledge at time of choosing) Solve by figuring out what actors will do based on beliefs/payoffs. Main goal: identify a(cid:272)tor"s strategies (plan that specifies what they would do under every possible circumstances, including other actors decisions) ~ no player has an incentive to unilaterally switch to another strategy. ~ resting point at which no one is willing to change their strategy.
