ECE 468 Lecture Notes - Lecture 1: Demand Curve, Paradigm Shift, Yottabyte
20 Jul 2020
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Consumer willingness to pay (random, well defined, we can estimate) How do competitors respond? (cannot estimate b/c it"s a choice) A game is a situation of strategic interaction. Strategic interaction my payoff depends on my choice and your choice. Section simultaneous move games of complete information ex) rock paper scissors. We will start with: 2 players, 2 actions (a, a2) key preferences are over joint actions. Know everything about the game (rules, not the choices) An action a strictly dominates an action a" (aka a prime) if u(a,y) > u(a",y) for any action y of the other player. A is a better choice than a prime, b/c a strictly dominates a" a gives strictly higher payoff. Prisoner"s dilemma both players should confess. Player 1: quiet = 1 vs 10 yrs ; fink = 0 vs 8 years choose fink. Player 2: quiet = 1 vs 10 yrs ; fink = 0 vs 8 years choose fink.
