Matching Pennies Solution

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Matching Pennies Solution Strategic form: 2 x 2 Payoff player 1 f i F 1 -1 I -1 1 2 x 2 Payoff player 2 f i F -1 1 I 1 -1 EE = Extreme Equilibrium, EP = Expected Payoffs Rational: EE 1 P1: (1) 1/2 1/2 EP= 0 P2: (1) 1/2 1/2 EP= 0 Decimal: EE 1 P1: (1) 0.5 0.5 EP= 0 P2: (1) 0.5 0.5 EP= 0 Connected component 1: {1} x {1}

description

GT problem

Transcript of Matching Pennies Solution

  • Matching Pennies Solution

    Strategic form:

    2 x 2 Payoff player 1

    f i

    F 1 -1

    I -1 1

    2 x 2 Payoff player 2

    f i

    F -1 1

    I 1 -1

    EE = Extreme Equilibrium, EP = Expected Payoffs

    Rational:

    EE 1 P1: (1) 1/2 1/2 EP= 0 P2: (1) 1/2 1/2 EP= 0

    Decimal:

    EE 1 P1: (1) 0.5 0.5 EP= 0 P2: (1) 0.5 0.5 EP= 0

    Connected component 1:

    {1} x {1}