POL 314 Lecture Notes - Lecture 5: Game Theory, Coordination Game, Strategic Dominance
20 May 2020
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Document Summary
In most social situations, the payoffs are not zero-sum. Elections are a win-lose situation but legislating or making public policy involves trade-offs rather than win-lose outcomes: non-zero-sum but also non-cooperative games are a very important chapter in gt. Non-cooperative does not mean that cooperation never occurs. What it means is that the rules of the game do not imply that an agreement is enforceable: we"ve already encountered the notion of dominated strategy when dealing with zero-sum games. It also applies to non-zero sum games, such as pd: rd dominates rc; and cd dominates cc. : how to locate it: (+) is just an arbitrary marker that identifies row"s best responses to each of column"s strategies; and (-) refers to column"s best response to either r1 or r2. Where we find a cell containing best responses for both row & column, we have a ne.
