Game Theory (ECON 159)
We consider games that have both simultaneous and sequential components, combining ideas from before and after the midterm. We represent what a player does not know within a game using an information set: a collection of nodes among which the player cannot distinguish. This lets us define games of imperfect information; and also lets us formally define subgames. We then extend our definition of a strategy to imperfect information games, and use this to construct the normal form (the payoff matrix) of such games. A key idea here is that it is information, not time per se, that matters. We show that not all Nash equilibria of such games are equally plausible: some are inconsistent with backward induction; some involve non-Nash behavior in some (unreached) subgames. To deal with this, we introduce a more refined equilibrium notion, called sub-game perfection.
00:00 - Chapter 1. Games of Imperfect Information: Information Sets
18:56 - Chapter 2. Games of Imperfect Information: Translating a Game from Matrix Form to Tree Form and Vice Versa
35:11 - Chapter 3. Games of Imperfect Information: Finding Nash Equilibria
49:59 - Chapter 4. Games of Imperfect Information: Sub-games
01:10:17 - Chapter 5. Games of Imperfect Information: Sub-game Perfect Equilibria
Complete course materials are available at the Yale Online website: online.yale.edu
This course was recorded in Fall 2007.
Tagged under: Backward,Induction,Battle,sexes,Cournot,duopoly,extensive,form,imperfect,information,sets,Nash,equilibrium,normal,-game,perfect
Clip makes it super easy to turn any public video into a formative assessment activity in your classroom.
Add multiple choice quizzes, questions and browse hundreds of approved, video lesson ideas for Clip
Make YouTube one of your teaching aids - Works perfectly with lesson micro-teaching plans
1. Students enter a simple code
2. You play the video
3. The students comment
4. You review and reflect
* Whiteboard required for teacher-paced activities
With four apps, each designed around existing classroom activities, Spiral gives you the power to do formative assessment with anything you teach.
Carry out a quickfire formative assessment to see what the whole class is thinking
Create interactive presentations to spark creativity in class
Student teams can create and share collaborative presentations from linked devices
Turn any public video into a live chat with questions and quizzes