Qwag Jó, Ólwz-W Cz<Fv@¬

Total Page:16

File Type:pdf, Size:1020Kb

Qwag Jó, Ólwz-W Cz<Fv@¬ Autor: Paulo Sérgio da Silva Borges A Model of Strategy Games Based on the Paradigm of the Iterated Prisoner's Dilemma Employing Fuzzy Sets Esta tese foi julgada adequada para a obtenção título de “Doutor em Engenharia", especialidade Engenharia de Produção e aprovada em sua forma fin pelo Programa de Pós-graduação. Ricardo Ricardo M. B PhD - Coordenador do Programa de Pós-Graduação em Engenharia ~ Produção Banca Examinadora: Ricardo M. Bírci Ph.D, advisor , Qwag Jó, ólwz-W Suresh K. Khator, Ph.D /A¿›ÀÍraha4í~ cz<fv@¬ E ar Lanze Ph.D. , A^ÀYõ-À‹> ~ ~ 0-\J\¢>‹_§Ú ” A io _ Novaes, Ph.D. / °`“7I Luis Fernando Jacinto Maia, Dr. Eng. 11 Universidade Federal de Santa Catarina Programa de Pós-Graduação em Engenharia de Produção A model 'of strategy games based on the paradigm of the Iterated Prisoner's Dilemma employing Fuzzy Sets Doctoral Dissertation submitted as a partia! fulii ih nent o f the conditions required for the obtainance of the degree of Doctor in Production and Systems Engineering Paulo Sergio da Silva Borges ii._-_i *2 1 a IIIHI I 247.395 IIàs .Zias-*_ O March 1996 UFSC-BU I I P Universidade Federal de Santa Catarina Programa de Pós Graduaçao em Engenharia de Produçao Um modelo de jogos de estratégia com base no paradigma do Dilema do Prisioneiro Iterado, com emprego de Fuzzy Sets Tese submetida como requisito parcial para obtenção do título de Doutor em Engenharia de Produçao Orientador Prof. Titular Ricardo Miranda Barcia, Ph.D. Coordenador do Programa I Prof. Titular Ricardo Miranda Barcia, Ph. D. Florianópolis, Março de 1996 iv Agradecimentos e dedicatória Agradeço ao Professor Abraham Kandel, da University of South Florida, que de forma sempre gentil incentivou a elaboração da presente Tese, provendo valiosos comentados e sugestões para melhorá-la, e dispondo-se a participar' de minha banca de examinadores. Agradeço também a Joseph Benios, estudante graduado da University of South Florida, que incansavelmente auxiliou-me na preparação do programa computacional para as simulações do modelo aplicativo usado nesta Tese. Dedico este trabalho a meus pais, a minha esposa Hélia e aos meus filhos Márcia Beatrice e Paulo Vinicius. \Í Resumo A Teoria de Jogos pode ser definida como a análise matemática formal de situações onde se observa algum tipo de conflito de interesses. Os jogadores são assumidos, pela teoria clássica, como racionais, o que significa que buscam sempre no jogo a maximização de suas utilidades esperadas. O jogo de 2 participantes conhecido por "Dilema do Prisioneiro" (PD) é considerado como o que melhor representa a contradição entre o emprego da racionalidade individual e da coletiva. Na versão tradicional do PD, as estrategias são sempre compostas pelas ações elementares “Cooperate" (C) ou “Defect” (D). O jogo iterado (IPD) constitui-seem um modelo que traduz com bastante fidelidade, e de forma simples, inúmeras questões freqüentemente encontradas na realidade, quando pessoas, grupos ou empresas disputam parcelas de recursos escassos ou limitados. A literatura disponivel sobre o tema e muito vasta, e muitas analises do lPD, incluindo simulações atraves de torneios computacionais e uso de tecnicas de inteligência artificial já foram efetuadas. Contudo, as estrategias consideradas no jogo estão restritas, na grande maioria dos estudos, a combinações deterministicas, condicionais ou probabilislicas das ações pontuais citadas, ou seja C e D. Nesta tese, uma nova versão do IPD e desenvolvida, chamada de Fuzzy Iterated Pn`soner”s Dílemma -- FIPD. Este metodo, ao permitir que os jogadores possam implementar ações graduais, objetiva uma modelagem mais realista do conflito de interesses representado pelo jogo, Adicionalmente, no FlPD os agentes decidem com base em um raciocinio qualitativo, traduzido neste trabalho pelo uso de sistemas especialistas difusos. A tese inclui dois enfoques do FIPD. O primeiro, de carater exploratório, consiste em um torneio computacional confrontando os estrategistas assistidos pelo sistema de decisão difuso entre si e com outros tipos de jogadores tradicionalmente bem sucedidos em trabalhos anteriores (TFT e Pavlov). O segundo enfoque, bem mais elaborado e detalhado, trata de uma aplicação pratica a um problema de divisão de mercado, onde varias firmas atuam vendendo produtos ou serviços a uma população diversificada de compradores, que possuem diferentes poder de compra e preferências relativas à qualidade dos itens. Esta abordagem imprimiu uma caracteristica altamente dinâmica às interações, simuladas com auxilio de um programa computacional orientado a objetos especialmente desenvolvido. As estrategias empregadas pelos participantes e seus desempenhos são analisados e discutidos, especialmente na segunda abordagem do FIPD, obtendo-se importantes conclusões a respeito do problema. Vl Abstract Game Theory can be defined as the formal mathematical analysis of situations where some kind of conflict ofinterest exists. The classical theory assumes that the players are rafional, in the sense that they always seek the maximization ot their expected utilities. The 2-person game known by the name of “Prisoner's Dilemma” (PD) is considered as the situation which best depicts the contradiction between the individual and the collective rationality. ln its traditional version, the strategies in the PD are always composed by the elementary and dichotomic actions "Cooperate“ (C) ou “Defect" (D). The iterated game (IPD) constitutes a model that mirrors, in a simple and direct manner, several problems often found in the real world, when people, groups or companies are involved in a dispute over some limited or scarce resource. The available literature regarding that theme is vast, and many comprehensive analysis of the IPD have been already performed, including computational tournaments and the employment of artificial intelligence techniques. However, the strategies considered in the game are usually confined to deterministic or probabilistic combinations of the mentioned punctual actions C and D. ln this dissertation, an innovative- version of the IPD is presented and developed, called Fuzzy lterated Pn`soner's Dilemma FlPD. That method, by allowing the players to implement gradual actions, aims al attaining a more realistic model of the conflict of interested represented by the game. Additionally, in the FlPD the agents decide based on a qualitative system of reasoning, which in this work regards the utilization of mzzy expert systems (FES). The dissertation includes two approaches of the FlPD. The first has an exploratory character, and consists of a computational contest where the FES-assisted strategists confront each other and also other well known successful rules (TFT and Pavlov). The second approach, much more elaborate and perfected, is directed at a practical application concerning a market share problem. There, several firms are present offering their products or services to a diversified population of buyers, the Consumers, which on their turn possess different buying powers and preferences relative to the quality of itens desired. That method has the advantage of imprinting a highly dynamic feature to the environment, which has been simulated by means of an C++ object-oriented program especially written. The strategies employed by the participants and their respective performances are extensively analyzed and discussed, mainly in the second approach, from which many important conclusions have been drawn. vii Contents Page Resumo v Abstract v1 Chapter 1 Introduction 1.1 Preambie ........................................................................... ._ 1.1 1.2 The Prisoner's Dilemma ..................................................... .. 1.2 1.3 Description of the Problem and Objective of the Dissertation 1.3 1.4 Methodoiogy ...................................................................... .. 1.6 1.5 Structure and Outiine of the Dissertation .......................... .. 1.8 1.6 Main Contributions of the Dissertation ................................ .. 1.10 Chapter 2 A Review of Fundamental Topics of Game Theory 2.1 introduction ....................................................................... ._ 21 Representation of 2.2 Strategic Games ................................... .. 24 2.2.1 Decision Trees ...................................................................... .. 24 2.2.2 Rule Sets .............................................................................. .. 25 2.3 Usual Methods for the Evaluation of the Sub-optima! Function ............................................................................ .. 25 The Minimax .. 2.3.1 Method ............................................................ 26 2.3.2 Alpha-Beta Cuts ................................................................... .. 27 2.3.3 Other Methods ...................................................................... .. 2.8 V111 2.4 information Sets ................................................................ .. 28 2.5 Strategies .......................................................................... .. 29 2.5.1 Saddle Points ....................................................................... ._ 2.10 25.2 Pure and Mixed Strategies ................................................... _. 211 2.5.3 The Minimax Theorem .......................................................... _. 2.14 2.6 Preferences, Utility and Rationality ..................................... .. 216 2.6.1 Fundamental Axioms of Utility Theory .................................. _. 2_17 2.6.2 Prospect Theory ..................................................................
Recommended publications
  • Biographies BIOGRAPHIES 327
    Biographies BIOGRAPHIES 327 ALDRICH, John Herbert Articles 1. “A method of scaling with applications to the 1968 and 1972 U.S. presidential elections.” American Political Born Science Review, 11(March):1977 (with Richard September 24, 1947, Pittsburgh, Pennsylvania, USA McKelvey). Current Position 2. “The dilemma of a paretian liberal: some consequences Pfizer-Pratt University Professor of Political Science, Duke of Sen’s theorem,” and “Liberal games: further thoughts University, Durham, North Carolina, 1997–. on social choice and game theory.” Public Choice, 30(Summer):1977. Degrees 3. “Electoral choice in 1972: a test of some theorems of B.A., Allegheny College, 1969; M.A., Ph.D., University of the spatial model of electoral competition.” Journal of Rochester, 1971, 1975. Mathematical Sociology, 5:1977. 4. “A dynamic model of presidential nomination Offices and Honors campaigns.” American Political Science Review, Co-Editor, American Journal of Political Science, 14(September):1980. 1985–1988 (with John L. Sullivan). 5. “A spatial model with party activists: implications for President, Southern Political Science Association, electoral dynamics,” and “rejoinder.” Public Choice, 1988–1989. 41:1983. Fellow, Center for Advanced Study in the Behavioral 6. “A downsian spatial model with party activism.” Sciences, 1989–1990. American Political Science Review, 17(December):1983. Fellow, Bellagio Center, 2002. 7. “Southern parties in state and nation.” Journal of Heinz Eulau Award (best article in the American Political Politics, August:2000. Science Review), 1990 (with Eugene Borgida and John L. 8. “Challenges to the American two-party system: Sullivan). evidence from the 1968, 1980, 1992, and 1996 presi- Gladys Kammerer Award (best book on U.S.
    [Show full text]
  • Paradoxes Situations That Seems to Defy Intuition
    Paradoxes Situations that seems to defy intuition PDF generated using the open source mwlib toolkit. See http://code.pediapress.com/ for more information. PDF generated at: Tue, 08 Jul 2014 07:26:17 UTC Contents Articles Introduction 1 Paradox 1 List of paradoxes 4 Paradoxical laughter 16 Decision theory 17 Abilene paradox 17 Chainstore paradox 19 Exchange paradox 22 Kavka's toxin puzzle 34 Necktie paradox 36 Economy 38 Allais paradox 38 Arrow's impossibility theorem 41 Bertrand paradox 52 Demographic-economic paradox 53 Dollar auction 56 Downs–Thomson paradox 57 Easterlin paradox 58 Ellsberg paradox 59 Green paradox 62 Icarus paradox 65 Jevons paradox 65 Leontief paradox 70 Lucas paradox 71 Metzler paradox 72 Paradox of thrift 73 Paradox of value 77 Productivity paradox 80 St. Petersburg paradox 85 Logic 92 All horses are the same color 92 Barbershop paradox 93 Carroll's paradox 96 Crocodile Dilemma 97 Drinker paradox 98 Infinite regress 101 Lottery paradox 102 Paradoxes of material implication 104 Raven paradox 107 Unexpected hanging paradox 119 What the Tortoise Said to Achilles 123 Mathematics 127 Accuracy paradox 127 Apportionment paradox 129 Banach–Tarski paradox 131 Berkson's paradox 139 Bertrand's box paradox 141 Bertrand paradox 146 Birthday problem 149 Borel–Kolmogorov paradox 163 Boy or Girl paradox 166 Burali-Forti paradox 172 Cantor's paradox 173 Coastline paradox 174 Cramer's paradox 178 Elevator paradox 179 False positive paradox 181 Gabriel's Horn 184 Galileo's paradox 187 Gambler's fallacy 188 Gödel's incompleteness theorems
    [Show full text]
  • List of Paradoxes 1 List of Paradoxes
    List of paradoxes 1 List of paradoxes This is a list of paradoxes, grouped thematically. The grouping is approximate: Paradoxes may fit into more than one category. Because of varying definitions of the term paradox, some of the following are not considered to be paradoxes by everyone. This list collects only those instances that have been termed paradox by at least one source and which have their own article. Although considered paradoxes, some of these are based on fallacious reasoning, or incomplete/faulty analysis. Logic • Barbershop paradox: The supposition that if one of two simultaneous assumptions leads to a contradiction, the other assumption is also disproved leads to paradoxical consequences. • What the Tortoise Said to Achilles "Whatever Logic is good enough to tell me is worth writing down...," also known as Carroll's paradox, not to be confused with the physical paradox of the same name. • Crocodile Dilemma: If a crocodile steals a child and promises its return if the father can correctly guess what the crocodile will do, how should the crocodile respond in the case that the father guesses that the child will not be returned? • Catch-22 (logic): In need of something which can only be had by not being in need of it. • Drinker paradox: In any pub there is a customer such that, if he or she drinks, everybody in the pub drinks. • Paradox of entailment: Inconsistent premises always make an argument valid. • Horse paradox: All horses are the same color. • Lottery paradox: There is one winning ticket in a large lottery. It is reasonable to believe of a particular lottery ticket that it is not the winning ticket, since the probability that it is the winner is so very small, but it is not reasonable to believe that no lottery ticket will win.
    [Show full text]
  • 6 Dynamic Games with Incomplete Information
    22 November 2005. Eric Rasmusen, [email protected]. Http://www.rasmusen.org. 6 Dynamic Games with Incomplete Information 6.1 Perfect Bayesian Equilibrium: Entry Deterrence II and III Asymmetric information, and, in particular, incomplete information, is enormously impor- tant in game theory. This is particularly true for dynamic games, since when the players have several moves in sequence, their earlier moves may convey private information that is relevant to the decisions of players moving later on. Revealing and concealing information are the basis of much of strategic behavior and are especially useful as ways of explaining actions that would be irrational in a nonstrategic world. Chapter 4 showed that even if there is symmetric information in a dynamic game, Nash equilibrium may need to be refined using subgame perfectness if the modeller is to make sensible predictions. Asymmetric information requires a somewhat different refine- ment to capture the idea of sunk costs and credible threats, and Section 6.1 sets out the standard refinement of perfect bayesian equilibrium. Section 6.2 shows that even this may not be enough refinement to guarantee uniqueness and discusses further refinements based on out-of- equilibrium beliefs. Section 6.3 uses the idea to show that a player’s ignorance may work to his advantage, and to explain how even when all players know something, lack of common knowledge still affects the game. Section 6.4 introduces incomplete information into the repeated prisoner’s dilemma and shows the Gang of Four solution to the Chain- store Paradox of Chapter 5. Section 6.5 describes the celebrated Axelrod tournament, an experimental approach to the same paradox.
    [Show full text]
  • Strategic Business Behavior and Antitrust
    WORKING PAPERS STRATEGIC BUSINESS BEHAVIOR AND ANTITRUST Charles A. Holt and David T. Scheffman WORKING PAPER NO. 162 April 1988 FfC Bureau of Economics working papers are preliminary materials circulated to stimulate discussion and critical comment All data contained in them are in the public domain. This iucludes information obtained by the Commi~on which has become part of pob6c record. The analyses and conclusions set forth are those of the authors and do not nece.\Wily reflect the views of other members of the Bureau of Economics, other Commission ~ or the Commission itself. Upon request, single copies of the paper will be provided. References in publications to FfC Bureau of Economics working papers by FfC economists (other than acknowledgement by a writer that he has access to such unpUblished materials) should be cleared with the author to protect the tentative character of these papers. BUREAU OF ECONOMICS FEDERAL TRADE COMMISSION WASHINGTON, DC 20580 Strategic Business Behavior and Antitrust- Charles A. Holt and David T. Scheffman 1 I. In troduction During the seventies business consultants and academics became interested in "business strategy" as an instrument for improving profitability. The emphasis of this approach was generally on actions that a firm could take to improve its long run competitive position. At about the same time, there was a renewed interest by industrial organization economists and antitrust authorities in the possibility that monopoly power could be created or enhanced through predatory or limit pricing or through use of non-price instruments such as investments, patents, contracts, etc. Finally, the renaissance of game theory that also began in the seventies spawned a renewed interest in theories of oligopoly that explicitly incorporated dynamic and "stra tegic" elemen ts.
    [Show full text]
  • GAMES and INFORMATION, FOURTH EDITION an Introduction to Game Theory
    GAMES AND INFORMATION, FOURTH EDITION An Introduction to Game Theory Eric Rasmusen Basil Blackwell 23 November 2005. Eric Rasmusen, [email protected]. http: //www.rasmusen.org/GI xiv Contents (starred sections are less important) List of Figures List of Tables List of Games Preface Contents and Purpose Changes in the Second Edition (1994) Changes in the Third Edition (2001) Changes in the Fourth Edition (2006) Using the Book The Level of Mathematics Other Books Contact Information Acknowledgements Introduction History Game Theory’s Method Exemplifying Theory This Book’s Style Notes PART 1: GAME THEORY 1 The Rules of the Game 1.1 Definitions 1.2 Dominated and Dominant Strategies: The Prisoners Dilemma 1.3 Iterated Dominance: The Battle of the Bismarck Sea 1.4 Nash Equilibrium: Boxed Pigs, The Battle of the Sexes, and Ranked Coordina- tion 1.5 Focal Points Notes Problems Classroom Game xv 2 Information 2.1 The Strategic and Extensive Forms of a Game 2.2 Information Sets 2.3 Perfect, Certain, Symmetric, and Complete Information 2.4 The Harsanyi Transformation and Bayesian Games 2.5 Example: The Png Settlement Game Notes Problems Classroom Game 3 Mixed and Continuous Strategies 3.1 Mixed Strategies: The Welfare Game 3.2 The Payoff-Equating Method and Games of Timing *3.3 Mixed Strategies with General Parameters and N Players: The Civic Duty Game *3.4 Randomizing Is Not Always Mixing: The Auditing Game 3.5 Continuous Strategies: The Cournot Game 3.6 Continuous Strategies: The Bertrand Game, Strategic Complements, and Strate- gic Substitutes
    [Show full text]
  • |||GET||| the Data Game 4Th Edition
    THE DATA GAME 4TH EDITION DOWNLOAD FREE Mark H Maier | 9780765629838 | | | | | The Data Game Exploring Data with Graphs and Numerical Summaries 2. The Multitask Agency Problem. NO YES. The Payoff-equating Method and Games of Timing. In it, you'll learn …. This book takes the ideas that have turned statistics into a central science in modern life and makes them accessible, without compromising the necessary rigor. Grokking Algorithms is a friendly take on this core computer science topic. Sampling Distributions 7. She is the co-author of an Introductory Statistics textbook for post secondary, co-author for a sports statistics textbook for high school, and has published more than 60 journal articles and book chapters. Downloads Examples and sample Excel workbooks Download. The Rules of the Game. Finitely Repeated Games and the Chainstore Paradox. Topical coverage reflecting the latest trends in statistical education, including: Measures of association for categorical variables in Chapter 3 Permutation testing in Chapters 10 and 11 Updated coverage of McNemar's test in Chapter 10 previously Chapter 11 New Caution margin boxes appear at appropriate places to help students avoid common mistakes. Selected type: Paperback. A plethora of chapter exercises test student comprehension through interesting The Data Game 4th edition problems. Efficiency Wages. Sign Up Already have an access code? List of Games. Skip to main content. Optimal Contracts: The Broadway Game. Students can explore the consequences of changing parameters and carry out statistical inference. The Strategic and Extensive Forms of a Game. Although now primarily a writer, Paul has worked as a programmer, consultant, database developer, and website developer.
    [Show full text]
  • Information to Users
    INFORMATION TO USERS This manuscript has been reproduced from the microfilm master. UMI films the text directly from the original or copy submitted. Thus, some thesis and dissertation copies are in typewriter face, while others may be from any type of computer printer. The quality of this reproduction is dependent upon the quality of the copy submitted. Broken or indistinct print, colored or poor quality illustrations and photographs, print bleedthrough, substandard margins, and improper alignment can adversely affect reproduction. In the unlikely event that the author did not send UMI a complete manuscript and there are missing pages, these will be noted. Also, if unauthorized copyright material had to be removed, a note will indicate the deletion. Oversize materials (e.g., maps, drawings, charts) are reproduced by sectioning the original, beginning at the upper left-hand comer and continuing from left to right in equal sections with small overlaps. Each original is also photographed in one exposure and is included in reduced form at the back of the book. Photographs included in the original manuscript have been reproduced xerographically in this copy. Higher quality 6" x 9" black and white photographic prints are available for any photographs or illustrations appearing in this copy for an additional charge. Contact UMI directly to order. A Bell & Howell Information Company 300 North Zeeb Road. Ann Arbor. Ml 48106-1346 USA 313/761-4700 800/521-0600 BORROWER BEHAVIOR AND LOAN REPAYMENT IN GROUP CREDIT DISSERTATION Presented in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy in the Graduate School of the Ohio State University By Teodoro S.
    [Show full text]
  • Recent Results on Belief, Knowledge and the Epistemic Foundations of Game Theory
    Research in Economics (1999) 53,149–225 Article No. reec.1999.0187 Available online at http://www.idealibrary.com on Recent results on belief, knowledge and the epistemic foundations of game theory PIERPAOLO BATTIGALLI† and GIACOMO BONANNO‡ †European University Institute, Fiesole (Florence) 50016, Italy ‡University of California, Davis, CA 95616-8578, U.S.A. Summary We provide a self-contained, selective overview of the literature on the role of knowledge and beliefs in game theory. We focus on recent results on the epistemic foundations of solution con- cepts, including correlated equilibrium, rationalizability in dynamic games, forward and backward induction.© 1999 Academic Press J.E.L. Classification: C72, D82. Keywords: Games, belief, knowledge, interactive epistemology, solution concepts. 1. Introduction§ The objective of this paper is to provide a selective overview of the relatively recent literature on the role of beliefs in game theory, with particular focus on the foundations of solution concepts. In order to make the paper self-contained and accessible to the general reader, we begin in Section 2 with an overview of the ‘‘state space’’ representation of beliefs and knowledge, which has its roots in modal logic (cf. Chellas, 1984) and is a generalization of the ‘‘information partition’’ approach commonly used in information economics and game theory. Sections 3 and 4 are devoted to the study of what assumptions on the beliefs and reasoning of the players are implicit in various solution concepts. Section 3 focuses on strategic-form games, while Section 4 is devoted to extensive- form games. A complementary and in-depth discussion of many of the issues covered in this paper can be found in Dekel and Gul (1997).
    [Show full text]
  • Economics Policy
    MA ECONOMICS (WITH SPECIALIZATION IN PUBLIC POLICY) CBCS Semester – I* CBCS Codes Micro Economic Theory and Policy PSEPTC 101 Macro Economic Theory and Policy PSEPTC 102 Public Economics PSEPTC 103 Optimization Techniques and Decision Theory PSEPTC 104 *Syllabus for the examination to be held in December 2014, 2015 and 2016 Semester – II* Public Policy Analysis & Urban Policy PSEPTC 201 Economics of Infrastructure & Public Policy PSEPTC 202 Poverty, Food Security & Human Development PSEPTC 203 Research Methodology PSEPTC 204 *Syllabus for the examination to be held in December 2015, 2016 and 2017 Semester – III* International Trade Theory and Policy PSEPTC 301 Industrial Economics and Public Policy PSEPTC 302 Sustainable Development and Public Policy PSEPTC 303 Financial Institutions and Markets PSEPTC 304 *Syllabus for the examination to be held in May 2015, 2016 and 2017 Semester – IV* Economic Policy for Developing Economies PSEPTC 401 Business Environment PSEPTC 402 The Economics of Innovation, Intellectual Property & Growth PSEPTC 403 Economics of Social Sector PSEPTC 404 *Syllabus for the examination to be held in May 2016, 2017 and 2018 Students shall have to opt for 18 courses in all: 16 courses as listed above and two courses from other Departments of 4 credits each, in the 3rd and 4th semesters respectively. 1 Pattern of Examination & Notes for Paper Setters All the courses listed above carry 4 credits each and will be of 100 marks and will have a common pattern of examination. For every course listed above, there shall be two minor tests, Minor I and Minor II of 20 marks each covering Unit I and Unit II respectively of the concerned paper.
    [Show full text]
  • Eui Working Papers in Economics
    Repository. Research Institute University l WP EUR 3 3 0 European Institute. Cadmus, 1 European University Institute, Florence on University On the Detection of Collusion and Predation Access EUI Working Paper ECO No. 95/35 European WORKING WORKING Open ECONOMICS PAPERS IN EUI Author(s). Available Louis The 2020. © P in hups Library EUI the by produced version Digitised Repository. Research Institute University European Institute. Cadmus, on University Access European Open Author(s). Available The 2020. © in Library EUI the by produced version Digitised Repository. Research Institute University European Institute. Cadmus, on University EUROPEAN UNIVERSITY INSTITUTE, FLORENCE Access BADIA FIESOLANA, SAN DOMENICO (FI) On the Detection ofCollusion and Predation European Open EUI Working ECOPaper No. 95/35 ECONOMICS DEPARTMENT Author(s). Available LOUIS P LOUIS The 2020. © in hlips Library EUI the by WP 3 3 0 EUR produced version Digitised Repository. Research Institute University European Institute. Cadmus, on University No part ofthis paper may be reproduced in any form Access European Open Printed in Italy in November 1995 withoutpermission ofthe author. European University Institute I -I 50016 San Domenico (FI) Author(s). Available All All rights reserved. Badia Fiesolana © Louis Phlips The 2020. © Italy in Library EUI the by produced version Digitised Repository. Research Institute University European JEL classification: L40, L41, D43. Institute. European anti-trust cases are discussed to illustrate. game-theoretic arguments to make such detection difficult. A fewof importantcollusion and predation, but also This lecturehow not expertsonly shows how forgame theory thecan contributedefense to the detectioncanAbstract use Keywords: Competition policy; game theory Cadmus, ofthe European Economic Association, Prague, September 1995 on University COLLUSION AND PREDATION Access Presidential Address to the Annual Congress ON THE DETECTION OF European 50016 San Domenico di Fiesole (Fi), Open European University Institute, Via dei Roccettini 9 Author(s).
    [Show full text]
  • Playing Games with the Law
    REVIEW ESSAYS Playing Games with the Law Ian Ayres* GAMES AND INFORMATION: AN INTRODUCTION TO GAME THEORY. By Eric Rasmusen. Oxford: Basil Blackwell. 1989. 352 pp. $29.50. In the last two decades, the theory of games has increasingly domi- nated microeconomic theory. Frank Fisher recently asserted that game theory has become "the premier fashionable tool of microtheorists": That ascendancy appears fairly complete. Bright young theorists today tend to think of every problem in game-theoretic terms .... Every department feels it needs at least one game theorist or at least one theorist who thinks in game-theoretic terms.... The field appears to be in an exciting stage of ferment.' Seminars, economic journals, and Ph.D. dissertations are awash with game-theoretic models of economic phenomena. 2 The marginalist revolution of Samuelson 3 is quickly being supplanted by the strategic models of a new breed of game theorists. 4 This dramatic change in methodology stems from a series of break- * Assistant Professor, Northwestern University School of Law; Research Fellow, Ameri- can Bar Foundation. B.A., Yale University; J.D., Yale Law School; Ph.D. (Economics), Massa- chusetts Institute of Technology. Avery Katz and Daryl Warder provided helpful comments. 1. Franklin M. Fisher, Games Economists Play: A Noncooperative View, 20 RANDJ. ECON. 113, 113 (1989). Fisher's description of the "ascendancy" is echoed by other economists. See, e.g., Carl Shapiro, The Theory of Business Strategy, 20 RANDJ. ECON. 125, 125 (1989) ("This new wave of [industrial organization] research consists almost exclusively of game-theoretic studies of behavior and performance in imperfectly competitive markets.").
    [Show full text]