5. Guessing Right - Simultaneous Move Games Flashcards
What is a zero sum game?
A game of perfect competition; whatever one player gains, another loses
What is minimaxing?
Minimizing the maximum loss
What is maximining?
Maximizing the minimum gain
What is a security value?
The minimum you get regardless of what your opponent does
What happens if you don’t play the Nash equilibrium?
You open the door for an opponent to take advantage of your choice
What happens if the sides have different security values?
Pure strategies will result in an infinite loop of second-guessing
What is domination?
An option dominates another option if its payoffs are better regardless of what the opponent does
What is a dominant strategy?
A strategy is dominant if it dominates every other strategy
What is the method for iterated elimination of dominant strategies?
Wipe out a dominating strategy and see what you’ve got left, and repeat until all strategies are gone
What is weak domination?
The payoffs are always at least as good, but sometimes better
What happens if you wipe out weakly dominating strategies?
It may eliminate other Nash equilibria
What is the best response method?
Select the best responses to any given choice by the other player, do the same in the other direction, the cells where both payoffs are selected are Nash equilibria
What is the advantage of the best response method?
It will find the best Nash equilibrium in any matrix
What is an admissible strategy?
A strategy is admissible if it not weakly dominated by any other strategy
