M12BR
School
Indiana University, Bloomington**We aren't endorsed by this school
Course
ECON 251
Subject
Economics
Date
Dec 16, 2024
Pages
7
Uploaded by ChefOstrich4910
Extensive Form GamesNormal (box) form games–Typically, the Prisoner’s Dilemma game is shown as a box game. But, it can also be shown as an extensive form game.Extensive form games–Also, known as tree games, represents a strategic game specifying , the actions (decisions) represented by connected by , and payoffs resulting from different strategies shown as the –These games are primarily used to illustrate
Extensive Form GamesExtensive form games–is used to determine the dominant strategy. Start at the–It is best used
Extensive Form GamesExtensive form games–Samsung and Apple can charge a high price for their new phone or a low price. Samsung goes first.HighHighHighLowLowLow
Extensive Form GamesExtensive form games–Backwards induction shows Apple chooses if Samsung chooses high or low.HighHighHighLowLowLow
Extensive Form GamesExtensive form games–Backwards induction shows Samsung chooses since Apple will chooseHighHighHighLowLowLow
Extensive Form GamesExtensive form games–Backwards induction shows the Nash equilibrium isHighHighHighLowLowLow
Markets: Oligopolies and Game TheoryModule 12