[ECON 2350] - Final Exam Guide - Comprehensive Notes for the exam (77 pages long!)

• School: York University
• Department: Economics
• Course: ECON 2350
• Professor: Vassilios Bardis

Document Summary

De nitions: game: a formal model of a social situation where each participant is rational and realizes that the welfare of each person depends on the actions of the others. Cooperative: players can agree on the strategy each will play and can write binding agreements that guarantee each behaves as promised, i. e. , each cooperates". Strategy pro le: in 2-player games, a pair of strategies, one per player: payo s: for each player we specify the payo she receives for each strategy pro le, outcomes: strategy pro les (and the associated payo s of the players). Representations of a game: normal form: players, strategies and payo s are speci ed ( outcome matrix" is used), extensive form: players, actions and their timing, information, and payo s are speci ed ( game tree" is used). To predict the outcome of the game and evaluate it in terms of e ciency. Equilibrium: our prediction of the outcome of the game