Game Theory Economics Question The following game is routinely played by youngsters—and adults as well—throughout the world. Two players simultaneously throw their right arms up and down to the count of “one, two, three.” (Nothing strategic happens as they do this.) On the count of three, each player quickly forms his or her hand into the shape of either a rock, a piece of paper, or a pair of scissors. Abbreviate these shapes as R, P, and S, respectively. The players make this choice at the same time. If the players pick the same shape, then the game ends in a tie. Otherwise, one of the players wins and the other loses. The winner is determined by the following rule: rock beats scissors, scissors beats paper, and paper beats rock. Each player obtains a payoff of 1 if he or she wins, ¯1 if he or she loses, and 0 if he or she ties. Represent this game in the extensive form. Also discuss the relevance of the order of play (which of the players has the move at the initial node) in the extensive form. Describe the strategy spaces and draw the normal-form matrix for this game as well.
Game Theory Economics Question The following game is routinely played
Game Theory Economics Question The following game is routinely played by youngsters—and adults as well—throughout the world. Two players simultaneously throw their right arms up and down to the count of “one, two, three.” (Nothing strategic happens as they do this.) On the count of three, each player quickly forms his or her hand into the shape of either a rock, a piece of paper, or a pair of scissors. Abbreviate these shapes as R, P, and S, respectively. The players make this choice at the same time. If the players pick the same shape, then the game ends in a tie. Otherwise, one of the players wins and the other loses. The winner is determined by the following rule: rock beats scissors, scissors beats paper, and paper beats rock. Each player obtains a payoff of 1 if he or she wins, ¯1 if he or she loses, and 0 if he or she ties. Represent this game in the extensive form. Also discuss the relevance of the order of play (which of the players has the move at the initial node) in the extensive form. Describe the strategy spaces and draw the normal-form matrix for this game as well.
0 Comments