Homeworks 1 Matching Pennies

1
Homeworks 1-- Matching Pennies
The standard reading is assumed with the first
payoff to even and the second to odd. (Even then
odd.) 0- means wins no pennies 2- means wins 2
pennies. Payoffs 1, -1 for wins one, loses one
would be equally correct.
2
Homeworks 2 -- Happy Hour

• This situation resembles a game because
• There is more than one player
• Strategy is important
• There are outcomes that depend on each players
  choice of strategy
• The basic strategies are offer free snacks, do
  not offer free snacks.

3
Sibling Rivalry 1
The strategies for Julia are to take Math or Lit,
and the strategies for Iris are to take Math or
Lit. Each sister will base her strategy on
maximizing the absolute value of her GPA.
Assuming the sisters make their decisions
simultaneously, the extended form representation
of the game follows --
4
Sibling Rivalry 2
5
Sibling Rivalry 3
What will happen? Iris can assure herself of a
4.0 by choosing Lit, so probably that is what she
will do. Anticipating that, Julia can get her 4.0
by choosing Math. This is the game in extended
form assuming that Iris chooses first and Julia
knows Iris Decision -- next slide
6
Sibling Rivalry 4
7
Sibling Rivalry 5 -- if Iris values relative
position
8
The great escape
There are two payoffs in the game depending on
the player. For the prisoner, his payoff is
freedom, or not getting caught by the guards
while trying to escape. For the warden, his
payoff is preventing the escape of the prisoner.
The number 10 denotes success for the party,
and 0 represents failure for the guards and a
-10 represents 10 more years in prison for the
prisoner. The strategies for the prisoner are
dig or climb, while the strategies for the warden
are to guard the walls or inspect the cells.
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The great escape 2
10
The great escape 3
Warden Decides First