Term 2 week 7 Flashcards
What is the different between complete and imperfect and complete and perfect
If the game is imperfect information they do not know the extensive form.
Complete means normal form is common knowledge.
What happens to the players in games of incomplete information?
They do not know how they are playing against
What their strategies are
What their preferences are
How is a specific type of player denoted?
What do we assume about types?
ti
Each player has a probability of being each type
No redundant types - no single type that tells you information about other people.
How do players make choose to make moves in incomplete games of information?
They can’t make moves contingent on other actions as they do not know the type
So they make choices based on on their own type.
What is a best response in the games of incomplete information?
-If there is not an alternative strategy to si that gives a higher payoff for a given type t tilda.
What is a Bayes-Nash equilibrium?
What information do players have in incomplete information?
They know the probability distrubution of types.
If a player finds that they are Loyal how can they work out the probability that their opponent is also loyal?
First find the prob of player 1 being loyal
Then find p of 1 and 2 both being loyal
then do both loyal / player 1 loyal
How do you find a bayes nash equilibrium?
If it maximises expected payoff for both players.
What is an easier way of presenting the action that a player would take based on the type they are?
(x,y) x is the action type D and y is the action if type L
How do you set up a cournot model?
In what ways can the cournot model set up happen?
Either one person has all information and the other person does not
They both have no information.
What is the set up for cournot competition when there is one-sided asymmetry?
Firm 2 has information about how much firm 1 produces
Firm 1 has no information about how much firm 2 produces.
you set up the profit max for firm 1 and firm 2.
Then diff both w.r.t to q1
and q2 for each situation.
This yields best reply /
You get expected of firm 2 then plug it into expected of firm 1
Then you can but this q1 back into the high and low Q2
What is the difference between and expectation and a conjecture?
An expectation you think it can take the value between..
Conjecture estimate of single number
Draw the best reply functions
