Game Theory

Chapter 2

How to “Solve” a Game I

Simultaneous, One-Shot Games

Now we will introduce some tools for achieving the major objective of game theory: If we are thinking about a particular strategic situation, what would we predict the players will do? Sometimes we can pinpoint one prediction that is clear, but other times we are left without any clear guidance. However, as we will see, in these situations the guidance is to act randomly (but in a specific way), or to try to change the rules of the game when possible. In this and the next two chapters we will look at games where people make choices at the same time. Then in Chapter 5, we will discuss games where one player moves first, and then the second player makes their decision in response. ...