CSC304 Lecture 5 Game Theory : Zero-Sum Games, the Minimax
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Game Theory 2: Extensive-Form Games and Subgame Perfection
Game Theory 2: Extensive-Form Games and Subgame Perfection 1 / 26 Dynamics in Games How should we think of strategic interactions that occur in sequence? Who moves when? And what can they do at different points in time? How do people react to different histories? 2 / 26 Modeling Games with Dynamics Players Player function I Who moves when Terminal histories I Possible paths through the game Preferences over terminal histories 3 / 26 Strategies A strategy is a complete contingent plan Player i's strategy specifies her action choice at each point at which she could be called on to make a choice 4 / 26 An Example: International Crises Two countries (A and B) are competing over a piece of land that B occupies Country A decides whether to make a demand If Country A makes a demand, B can either acquiesce or fight a war If A does not make a demand, B keeps land (game ends) A's best outcome is Demand followed by Acquiesce, worst outcome is Demand and War B's best outcome is No Demand and worst outcome is Demand and War 5 / 26 An Example: International Crises A can choose: Demand (D) or No Demand (ND) B can choose: Fight a war (W ) or Acquiesce (A) Preferences uA(D; A) = 3 > uA(ND; A) = uA(ND; W ) = 2 > uA(D; W ) = 1 uB(ND; A) = uB(ND; W ) = 3 > uB(D; A) = 2 > uB(D; W ) = 1 How can we represent this scenario as a game (in strategic form)? 6 / 26 International Crisis Game: NE Country B WA D 1; 1 3X; 2X Country A ND 2X; 3X 2; 3X I Is there something funny here? I Is there something funny here? I Specifically, (ND; W )? I Is there something funny here? -
Lecture 4 Rationalizability & Nash Equilibrium Road
Lecture 4 Rationalizability & Nash Equilibrium 14.12 Game Theory Muhamet Yildiz Road Map 1. Strategies – completed 2. Quiz 3. Dominance 4. Dominant-strategy equilibrium 5. Rationalizability 6. Nash Equilibrium 1 Strategy A strategy of a player is a complete contingent-plan, determining which action he will take at each information set he is to move (including the information sets that will not be reached according to this strategy). Matching pennies with perfect information 2’s Strategies: HH = Head if 1 plays Head, 1 Head if 1 plays Tail; HT = Head if 1 plays Head, Head Tail Tail if 1 plays Tail; 2 TH = Tail if 1 plays Head, 2 Head if 1 plays Tail; head tail head tail TT = Tail if 1 plays Head, Tail if 1 plays Tail. (-1,1) (1,-1) (1,-1) (-1,1) 2 Matching pennies with perfect information 2 1 HH HT TH TT Head Tail Matching pennies with Imperfect information 1 2 1 Head Tail Head Tail 2 Head (-1,1) (1,-1) head tail head tail Tail (1,-1) (-1,1) (-1,1) (1,-1) (1,-1) (-1,1) 3 A game with nature Left (5, 0) 1 Head 1/2 Right (2, 2) Nature (3, 3) 1/2 Left Tail 2 Right (0, -5) Mixed Strategy Definition: A mixed strategy of a player is a probability distribution over the set of his strategies. Pure strategies: Si = {si1,si2,…,sik} σ → A mixed strategy: i: S [0,1] s.t. σ σ σ i(si1) + i(si2) + … + i(sik) = 1. If the other players play s-i =(s1,…, si-1,si+1,…,sn), then σ the expected utility of playing i is σ σ σ i(si1)ui(si1,s-i) + i(si2)ui(si2,s-i) + … + i(sik)ui(sik,s-i). -
Game Theory- Prisoners Dilemma Vs Battle of the Sexes EXCERPTS
Lesson 14. Game Theory 1 Lesson 14 Game Theory c 2010, 2011 ⃝ Roberto Serrano and Allan M. Feldman All rights reserved Version C 1. Introduction In the last lesson we discussed duopoly markets in which two firms compete to sell a product. In such markets, the firms behave strategically; each firm must think about what the other firm is doing in order to decide what it should do itself. The theory of duopoly was originally developed in the 19th century, but it led to the theory of games in the 20th century. The first major book in game theory, published in 1944, was Theory of Games and Economic Behavior,byJohnvon Neumann (1903-1957) and Oskar Morgenstern (1902-1977). We will return to the contributions of Von Neumann and Morgenstern in Lesson 19, on uncertainty and expected utility. Agroupofpeople(orteams,firms,armies,countries)areinagame if their decision problems are interdependent, in the sense that the actions that all of them take influence the outcomes for everyone. Game theory is the study of games; it can also be called interactive decision theory. Many real-life interactions can be viewed as games. Obviously football, soccer, and baseball games are games.Butsoaretheinteractionsofduopolists,thepoliticalcampaignsbetweenparties before an election, and the interactions of armed forces and countries. Even some interactions between animal or plant species in nature can be modeled as games. In fact, game theory has been used in many different fields in recent decades, including economics, political science, psychology, sociology, computer science, and biology. This brief lesson is not meant to replace a formal course in game theory; it is only an in- troduction. -
Lecture Notes
GRADUATE GAME THEORY LECTURE NOTES BY OMER TAMUZ California Institute of Technology 2018 Acknowledgments These lecture notes are partially adapted from Osborne and Rubinstein [29], Maschler, Solan and Zamir [23], lecture notes by Federico Echenique, and slides by Daron Acemoglu and Asu Ozdaglar. I am indebted to Seo Young (Silvia) Kim and Zhuofang Li for their help in finding and correcting many errors. Any comments or suggestions are welcome. 2 Contents 1 Extensive form games with perfect information 7 1.1 Tic-Tac-Toe ........................................ 7 1.2 The Sweet Fifteen Game ................................ 7 1.3 Chess ............................................ 7 1.4 Definition of extensive form games with perfect information ........... 10 1.5 The ultimatum game .................................. 10 1.6 Equilibria ......................................... 11 1.7 The centipede game ................................... 11 1.8 Subgames and subgame perfect equilibria ...................... 13 1.9 The dollar auction .................................... 14 1.10 Backward induction, Kuhn’s Theorem and a proof of Zermelo’s Theorem ... 15 2 Strategic form games 17 2.1 Definition ......................................... 17 2.2 Nash equilibria ...................................... 17 2.3 Classical examples .................................... 17 2.4 Dominated strategies .................................. 22 2.5 Repeated elimination of dominated strategies ................... 22 2.6 Dominant strategies .................................. -
A New Approach to Stable Matching Problems
August1 989 Report No. STAN-CS-89- 1275 A New Approach to Stable Matching Problems bY Ashok Subramanian Department of Computer Science Stanford University Stanford, California 94305 3 DISTRIBUTION /AVAILABILITY OF REPORT Unrestricted: Distribution Unlimited GANIZATION 1 1 TITLE (Include Securrty Clamfrcat!on) A New Approach to Stable Matching Problems 12 PERSONAL AUTHOR(S) Ashok Subramanian 13a TYPE OF REPORT 13b TtME COVERED 14 DATE OF REPORT (Year, Month, Day) 15 PAGE COUNT FROM TO August 1989 34 16 SUPPLEMENTARY NOTATION 17 COSATI CODES 18 SUBJECT TERMS (Contrnue on reverse If necessary and jdentrfy by block number) FIELD GROUP SUB-GROUP 19 ABSTRACT (Continue on reverse if necessary and identrfy by block number) Abstract. We show that Stable Matching problems are the same as problems about stable config- urations of X-networks. Consequences include easy proofs of old theorems, a new simple algorithm for finding a stable matching, an understanding of the difference between Stable Marriage and Stable Roommates, NTcompleteness of Three-party Stable Marriage, CC-completeness of several Stable Matching problems, and a fast parallel reduction from the Stable Marriage problem to the ’ Assignment problem. 20 DISTRIBUTION /AVAILABILITY OF ABSTRACT 21 ABSTRACT SECURITY CLASSIFICATION q UNCLASSIFIED/UNLIMITED 0 SAME AS Rf’T 0 DTIC USERS 22a NAME OF RESPONSIBLE INDIVIDUAL 22b TELEPHONE (Include Area Code) 22c OFFICE SYMBOL Ernst Mavr DD Form 1473, JUN 86 Prevrous edrtions are obsolete SECURITY CLASSIFICATION OF TYS PAGt . 1 , S/N 0102-LF-014-6603 \ \ ““*5 - - A New Approach to Stable Matching Problems * Ashok Subramanian Department of Computer Science St anford University Stanford, CA 94305-2140 Abstract. -
Evolutionary Stable Strategy Application of Nash Equilibrium in Biology
GENERAL ARTICLE Evolutionary Stable Strategy Application of Nash Equilibrium in Biology Jayanti Ray-Mukherjee and Shomen Mukherjee Every behaviourally responsive animal (including us) make decisions. These can be simple behavioural decisions such as where to feed, what to feed, how long to feed, decisions related to finding, choosing and competing for mates, or simply maintaining ones territory. All these are conflict situations between competing individuals, hence can be best understood Jayanti Ray-Mukherjee is using a game theory approach. Using some examples of clas- a faculty member in the School of Liberal Studies sical games, we show how evolutionary game theory can help at Azim Premji University, understand behavioural decisions of animals. Game theory Bengaluru. Jayanti is an (along with its cousin, optimality theory) continues to provide experimental ecologist who a strong conceptual and theoretical framework to ecologists studies mechanisms of species coexistence among for understanding the mechanisms by which species coexist. plants. Her research interests also inlcude plant Most of you, at some point, might have seen two cats fighting. It invasion ecology and is often accompanied with the cats facing each other with puffed habitat restoration. up fur, arched back, ears back, tail twitching, with snarls, growls, Shomen Mukherjee is a and howls aimed at each other. But, if you notice closely, they faculty member in the often try to avoid physical contact, and spend most of their time School of Liberal Studies in the above-mentioned behavioural displays. Biologists refer to at Azim Premji University, this as a ‘limited war’ or conventional (ritualistic) strategy (not Bengaluru. He uses field experiments to study causing serious injury), as opposed to dangerous (escalated) animal behaviour and strategy (Figure 1) [1]. -
Game Theory]: Basics of Game Theory
Artificial Intelligence Methods for Social Good M2-1 [Game Theory]: Basics of Game Theory 08-537 (9-unit) and 08-737 (12-unit) Instructor: Fei Fang [email protected] Wean Hall 4126 1 5/8/2018 Quiz 1: Recap: Optimization Problem Given coordinates of 푛 residential areas in a city (assuming 2-D plane), denoted as 푥1, … , 푥푛, the government wants to find a location that minimizes the sum of (Euclidean) distances to all residential areas to build a hospital. The optimization problem can be written as A: min |푥푖 − 푥| 푥 푖 B: min 푥푖 − 푥 푥 푖 2 2 C: min 푥푖 − 푥 푥 푖 D: none of above 2 Fei Fang 5/8/2018 From Games to Game Theory The study of mathematical models of conflict and cooperation between intelligent decision makers Used in economics, political science etc 3/72 Fei Fang 5/8/2018 Outline Basic Concepts in Games Basic Solution Concepts Compute Nash Equilibrium Compute Strong Stackelberg Equilibrium 4 Fei Fang 5/8/2018 Learning Objectives Understand the concept of Game, Player, Action, Strategy, Payoff, Expected utility, Best response Dominant Strategy, Maxmin Strategy, Minmax Strategy Nash Equilibrium Stackelberg Equilibrium, Strong Stackelberg Equilibrium Describe Minimax Theory Formulate the following problem as an optimization problem Find NE in zero-sum games (LP) Find SSE in two-player general-sum games (multiple LP and MILP) Know how to find the method/algorithm/solver/package you can use for solving the games Compute NE/SSE by hand or by calling a solver for small games 5 Fei Fang 5/8/2018 Let’s Play! Classical Games -
Prisoners of Reason Game Theory and Neoliberal Political Economy
C:/ITOOLS/WMS/CUP-NEW/6549131/WORKINGFOLDER/AMADAE/9781107064034PRE.3D iii [1–28] 11.8.2015 9:57PM Prisoners of Reason Game Theory and Neoliberal Political Economy S. M. AMADAE Massachusetts Institute of Technology C:/ITOOLS/WMS/CUP-NEW/6549131/WORKINGFOLDER/AMADAE/9781107064034PRE.3D iv [1–28] 11.8.2015 9:57PM 32 Avenue of the Americas, New York, ny 10013-2473, usa Cambridge University Press is part of the University of Cambridge. It furthers the University’s mission by disseminating knowledge in the pursuit of education, learning, and research at the highest international levels of excellence. www.cambridge.org Information on this title: www.cambridge.org/9781107671195 © S. M. Amadae 2015 This publication is in copyright. Subject to statutory exception and to the provisions of relevant collective licensing agreements, no reproduction of any part may take place without the written permission of Cambridge University Press. First published 2015 Printed in the United States of America A catalog record for this publication is available from the British Library. Library of Congress Cataloging in Publication Data Amadae, S. M., author. Prisoners of reason : game theory and neoliberal political economy / S.M. Amadae. pages cm Includes bibliographical references and index. isbn 978-1-107-06403-4 (hbk. : alk. paper) – isbn 978-1-107-67119-5 (pbk. : alk. paper) 1. Game theory – Political aspects. 2. International relations. 3. Neoliberalism. 4. Social choice – Political aspects. 5. Political science – Philosophy. I. Title. hb144.a43 2015 320.01′5193 – dc23 2015020954 isbn 978-1-107-06403-4 Hardback isbn 978-1-107-67119-5 Paperback Cambridge University Press has no responsibility for the persistence or accuracy of URLs for external or third-party Internet Web sites referred to in this publication and does not guarantee that any content on such Web sites is, or will remain, accurate or appropriate. -
Collusion Constrained Equilibrium
Theoretical Economics 13 (2018), 307–340 1555-7561/20180307 Collusion constrained equilibrium Rohan Dutta Department of Economics, McGill University David K. Levine Department of Economics, European University Institute and Department of Economics, Washington University in Saint Louis Salvatore Modica Department of Economics, Università di Palermo We study collusion within groups in noncooperative games. The primitives are the preferences of the players, their assignment to nonoverlapping groups, and the goals of the groups. Our notion of collusion is that a group coordinates the play of its members among different incentive compatible plans to best achieve its goals. Unfortunately, equilibria that meet this requirement need not exist. We instead introduce the weaker notion of collusion constrained equilibrium. This al- lows groups to put positive probability on alternatives that are suboptimal for the group in certain razor’s edge cases where the set of incentive compatible plans changes discontinuously. These collusion constrained equilibria exist and are a subset of the correlated equilibria of the underlying game. We examine four per- turbations of the underlying game. In each case,we show that equilibria in which groups choose the best alternative exist and that limits of these equilibria lead to collusion constrained equilibria. We also show that for a sufficiently broad class of perturbations, every collusion constrained equilibrium arises as such a limit. We give an application to a voter participation game that shows how collusion constraints may be socially costly. Keywords. Collusion, organization, group. JEL classification. C72, D70. 1. Introduction As the literature on collective action (for example, Olson 1965) emphasizes, groups often behave collusively while the preferences of individual group members limit the possi- Rohan Dutta: [email protected] David K. -
Alpha-Beta Pruning
Alpha-Beta Pruning Carl Felstiner May 9, 2019 Abstract This paper serves as an introduction to the ways computers are built to play games. We implement the basic minimax algorithm and expand on it by finding ways to reduce the portion of the game tree that must be generated to find the best move. We tested our algorithms on ordinary Tic-Tac-Toe, Hex, and 3-D Tic-Tac-Toe. With our algorithms, we were able to find the best opening move in Tic-Tac-Toe by only generating 0.34% of the nodes in the game tree. We also explored some mathematical features of Hex and provided proofs of them. 1 Introduction Building computers to play board games has been a focus for mathematicians ever since computers were invented. The first computer to beat a human opponent in chess was built in 1956, and towards the late 1960s, computers were already beating chess players of low-medium skill.[1] Now, it is generally recognized that computers can beat even the most accomplished grandmaster. Computers build a tree of different possibilities for the game and then work backwards to find the move that will give the computer the best outcome. Al- though computers can evaluate board positions very quickly, in a game like chess where there are over 10120 possible board configurations it is impossible for a computer to search through the entire tree. The challenge for the computer is then to find ways to avoid searching in certain parts of the tree. Humans also look ahead a certain number of moves when playing a game, but experienced players already know of certain theories and strategies that tell them which parts of the tree to look. -
Chapter 16 Oligopoly and Game Theory Oligopoly Oligopoly
Chapter 16 “Game theory is the study of how people Oligopoly behave in strategic situations. By ‘strategic’ we mean a situation in which each person, when deciding what actions to take, must and consider how others might respond to that action.” Game Theory Oligopoly Oligopoly • “Oligopoly is a market structure in which only a few • “Figuring out the environment” when there are sellers offer similar or identical products.” rival firms in your market, means guessing (or • As we saw last time, oligopoly differs from the two ‘ideal’ inferring) what the rivals are doing and then cases, perfect competition and monopoly. choosing a “best response” • In the ‘ideal’ cases, the firm just has to figure out the environment (prices for the perfectly competitive firm, • This means that firms in oligopoly markets are demand curve for the monopolist) and select output to playing a ‘game’ against each other. maximize profits • To understand how they might act, we need to • An oligopolist, on the other hand, also has to figure out the understand how players play games. environment before computing the best output. • This is the role of Game Theory. Some Concepts We Will Use Strategies • Strategies • Strategies are the choices that a player is allowed • Payoffs to make. • Sequential Games •Examples: • Simultaneous Games – In game trees (sequential games), the players choose paths or branches from roots or nodes. • Best Responses – In matrix games players choose rows or columns • Equilibrium – In market games, players choose prices, or quantities, • Dominated strategies or R and D levels. • Dominant Strategies. – In Blackjack, players choose whether to stay or draw. -
How to Win at Tic-Tac-Toe
More Than Child’s Play How to Get N in a Row Games with Animals Hypercube Tic-Tac-Toe How to Win at Tic-Tac-Toe Norm Do Undoubtably, one of the most popular pencil and paper games in the world is tic-tac-toe, also commonly known as noughts and crosses. In this talk, you will learn how to beat your friends (at tic-tac-toe), discover why snaky is so shaky, and see the amazing tic-tac-toe playing chicken! March 2007 Norm Do How to Win at Tic-Tac-Toe Tic-Tac-Toe is popular: You’ve all played it while sitting at the back of a boring class. In fact, some of you are probably playing it right now! Tic-Tac-Toe is boring: People who are mildly clever should never lose. More Than Child’s Play How to Get N in a Row Some Facts About Tic-Tac-Toe Games with Animals Games to Beat your Friends With Hypercube Tic-Tac-Toe Some facts about tic-tac-toe Tic-Tac-Toe is old: It may have been played under the name of “terni lapilli” in Ancient Rome. Norm Do How to Win at Tic-Tac-Toe Tic-Tac-Toe is boring: People who are mildly clever should never lose. More Than Child’s Play How to Get N in a Row Some Facts About Tic-Tac-Toe Games with Animals Games to Beat your Friends With Hypercube Tic-Tac-Toe Some facts about tic-tac-toe Tic-Tac-Toe is old: It may have been played under the name of “terni lapilli” in Ancient Rome.