ECON-2006EG Study Guide - Quiz Guide: Extensive-Form Game, Nash Equilibrium, Normal-Form Game
7 Mar 2021
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Document Summary
The payoff" to the decision depends on the actions themselves, what we and others decide to do, and on when the decisions were taken and how they relate to actions taken by others. The payoff from a given move depends on what the opponent does in response, hence the opponent"s response must be anticipated. Basic elements of a game the players, the strategies available to each player and the payoffs each player receives for each possible combination of strategies. Payoff matrix a table that describes the payoffs in a game for each possible combination of strategies. Example: boeing and airbus simultaneously decide on a price for a long-distance jet; either a high or a low price. Dominant strategy one that yields a higher payoff no matter what the other players in a game choose. Dominated strategy a strategy available to a player that yields a lower payoff than some other strategy.
