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1、DynamicGamesofCompleteInformationDynamicGamesofCompleteandImperfectInformationJune17,2003173-347GameTheory--Lecture20OutlineofdynamicgamesofcompleteinformationDynamicgamesofcompleteinformationExtensive-formrepresentationDynamicgamesofcompleteandperfectinformationGametreeSubgame
2、-perfectNashequilibriumBackwardinductionApplicationsDynamicgamesofcompleteandimperfectinformationMoreapplicationsRepeatedgamesJune17,2003273-347GameTheory--Lecture20Today’sAgendaReviewofpreviousclassRepeatedgamesInfinitelyrepeatedgamesJune17,2003373-347GameTheory--Lecture20Two-
3、stagerepeatedgameTwo-stageprisoners’dilemmaTwoplayersplaythefollowingsimultaneousmovegametwiceTheoutcomeofthefirstplayisobservedbeforethesecondplaybeginsThepayofffortheentiregameissimplythesumofthepayoffsfromthetwostages.Thatis,thediscountfactoris1.Question:whatisthesubgameperf
4、ectNashequilibrium?Player2L2R2Player1L11,15,0R10,54,4June17,2003473-347GameTheory--Lecture20Gametreeofthetwo-stageprisoners’dilemma1L1R12L2R22L2R2L1R12L2R22L2R2L1R12L2R22L2R2L1R12L2R22L2R2L1R12L2R22L2R21+11+11+51+01+01+51+41+411115+10+15+50+05+00+55+40+40+15+10+55+00+05+50+45+4
5、4+14+14+54+04+04+54+44+4June17,2003573-347GameTheory--Lecture20Informalgametreeofthetwo-stageprisoners’dilemma1L1R12L2R22L2R2L1R12L2R22L2R2L1R12L2R22L2R2L1R12L2R22L2R2L1R12L2R22L2R2115005441111(1,1)(5,0)(0,5)(4,4)115005441150054411500544June17,2003673-347GameTheory--Lecture20In
6、formalgametreeofthetwo-stageprisoners’dilemma1L1R12L2R22L2R2L1R12L2R22L2R2L1R12L2R22L2R2L1R12L2R22L2R2L1R12L2R22L2R2115005441111(2,2)(6,1)(1,6)(5,5)115005441150054411500544June17,2003773-347GameTheory--Lecture20two-stageprisoners’dilemmaThesubgame-perfectNashequilibrium (L1L1L1
7、L1L1,L2L2L2L2L2) Player1playsL1atstage1,andplaysL1atstage2foranyoutcomeofstage1. Player2playsL2atstage1,andplaysL2atstage2foranyoutcomeofstage1.Player2L2R2Player1L12,26,1R11,65,5Thepayoff(1,1)ofthe2ndstagehasbeenaddedtothefirststagegame.June17,2003873-347GameTheory--Lecture20Fi
8、nitelyrepeatedgameAfinitelyrepeatedgameisadynamicgameo
