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Econ 223: week 2 2012
Lecture 4 : Offically scheduled day and time not yet known (at Jan 2012) Sequential Games:Payoffs, Games with Promises and Threats; Trust (2 of 4)
- Topic: game tree analysis of stop go, the strategy concept, the payoff concept, trust and threat games, why is entry deterrence a threat game?;
- handout | video on UC server | strategic econ video on uctv
- view: the supplement to lecture 4 in 2009 (really from 2007) is an in depth treatment of how to interpret payoff symbols/numbers in game theory;
- read: Kreps First 4 pages on the Trust and Threat games from Ch23 Credibility and Reputation (which we take up in more detail later in the course) - be careful: Kreps doesn't use colours and in his game trees the listing of whose payoff belongs to which plarer is the reverse of ours...!!).
- Here is a short review clip on the payoff concept - from a previous year but still good value
- on counting strategies have a look at this clip - it has one extra concept (the idea of one big node encompassing several other ones...an information set....which will be "new" as we haven't yet covered it in class..but we will, soon)
Lecture 5 : Offically scheduled day and time not yet known (at Jan 2012)Sequential Games: systematically changing games (order of play , moves, players, payoffs) and observing changes in predicted outcomes (3 of 4)
- Topic: Order of play changes, and the alternating offer bargaining -
- handout | video on UC server | strategic econ videos on uctv
- read: Dixit and Skeath ch 3
Lecture 6 : Offically scheduled day and time not yet known (at Jan 2012)Sequential Games: Trust, Lock-ins and Hold-ups (4 of 4)
- Topic: Applying game tree's to help understand the problems (and potential solutions?) of Hold up and Lock in. ;
- handout | video on UC server | strategic econ videos on uctv
- read: Varian and Shapiro's Information
Rules ch
5 and 6 ; check out
their book Information
Rules: A Strategic Guide to the Network Economy on
Amazon.com where you can buy used copies for around the price of
a cup of coffee, and believe me, you'll get a lot of more value
out of this book . It is a classic on strategy and networks ,
exceptionally interesting, many deep profound ideas...and examples
for customers and producers, and policy regulators, about
"information goods" and the "network economy";
If you are in HR and are wondering how Game Theory can help you and
your organisation out, have a lok at the following superb book by
David Kreps and James Baron from Stanford: Strategic
Human Resources: Frameworks for General Managers
; used copies are cheap- I will assign a chapter from their book for reading and discussion.
- read: Games against yourself - a fascinating article by Nobel Laureate Thomas Schelling on strategic interaction between one's present and future self, and the problem of self control
useful video clips, suggestions, etc
- uctv video clip on strategies as lists
- sequential game analysis download After watching this video change the order of play, analyse the new game using rollback reasoning, and compare the predictions. Why do the predictions differ? Which of these two forms of games is "like" (strategically speaking) the Kreps Threat game?
- streaming video clipon drawing a game tree and using it to analyse the alternating offer bargaining game (2005 lectures)
- changing order of moves in the entry deterrence game 9 min video clip
- SWITCHING COSTS, LOCK-IN AND HOLD UP a short 10 min video clip on f switching costs and lock-in; watch it here on uctv
News
- midterm test week 6; in class
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