微观经济学讲义10PPT课件

United Airlines Options
Raise Spending
No Raise
Raise Spending
United: American:
$5,500 United $5,500 American
$8,000 $2,000
No Raise
United: American:
$2,000 United: $8,000 American:
▪ Actions have payoffs that depend on ▪ The actions ▪ When they are taken ▪ The actions of others
▪ Some markets are characterized by interdependence ▪ Apply to monopolistic competition and oligopoly
Chapter 10
Games and Strategic Behavior
McGraw-Hill/Irwin
©2009 The McGraw-Hill Companies, All Rights Reserved
Learning Objectives
1. Describe the basic elements of a game 2. Define and find an equilibrium for a game 3. Recognize and show the effects of dominant
LO 10 - 2
10-7
American and United – Scenario 2
▪ Same situation ▪ Different payoffs; non-symmetric
American Airlines Options
United Airlines Options
Raise Spending
▪ America raises spending ▪ United anticipates American action; does not raise
LO 10 - 2
10-8
Prisoner's Dilemma
Dominant strategy
Optimal strategy
▪ The prisoner's dilemma has a dominant strategy
▪ A dominant strategy is one that yields a higher payoff no matter what the other player does ▪ Dominated strategy is any other strategy available to a player who has a dominant strategy
LO 10 - 1
10-4
American and United – Scenario 1
▪ Players: United and American Airlines supplying service between Chicago and St. Louis ▪ No other carriers
strategies. 4. Define and explain the Prisoner's Dilemma and how it
applies to real-world situations 5. Show how games in which timing matters differ from
▪ Strategies: Increase advertising by $1,000 or not ▪ Assumption
▪ All payoffs are known to all parties
LO 10 - 1
10-5
Payoff Matrix
American Airlines Options
games in which it does not. 6. Discuss commitment problems and explain how
altering preferences can solve commitment problems
LO 10- All
10-2
Strategies and Payoffs
$6,000 $6,000
▪ Payoff is symmetric ▪ Dominant strategy is raise advertising spending
▪ Both companies are worse off
LO 10 - 3
10-6
Equilibrium in a Game
▪ Nash equilibrium is any combination of strategies in which each player’s strategy is her or his best choice, given the other player’s strategies ▪ Equilibrium occurs when each player follows his dominant strategy, if it exists ▪ Equilibrium does not require a dominant strategy
LO 10- All
10-3
Game Theory
▪ Basic elements of a game ▪ The players ▪ Their available strategies, actions, or decisions ▪ The payoff to each player for each possible action
No Raise
Raise Spending
United: American:
$3,000 United $4,000 American
$8,000 $3,000
No Raise
U000 United: $5,000 American:
$5,000 $2,000