POL111H5 Lecture Notes - Lecture 3: Tax Resistance, Extensive-Form Game, Game Tree

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17 May 2012
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Terms: game theory: a fundamental tool that political scientists use to model and analyze strategic situations. Strategic situation: a situation in which the choices of one actor depend on the choices made by other actors. Strategic game (normal form): a game represented by a matrix of payoffs, that examines strategic situations in which players make choices simultaneously. Strategy: a complete plan of acting for playing a game that specifies a player would do under every possible circumstance. Terms associated with strategic or normal form games. Best reply: the action that yields the highest payoff given what the other player is doing: for player a given. Two dominant strategies which is when player a and b steal. There is a nash equilibrium which independent from dominant. There is a dominant strategy nash equilibrium which is when both players have a nash equilibrium and a dominant strategy. Dominant strategy: strategy that is a best reply to all the other player"s strategy.

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