Game Theory Game 2 Dominant Strategies The Game

Game Theory Game 2 Dominant Strategies

The Game NYTimes CNN Mike Shor S G S 0 , 60 , G 50 100 , 80 0 60 , 100 2

The Game NYTimes CNN S G S 0 , 60 , G 50 100 , 80 0 60 , 100 G is “safe” for CNN n S is better for CNN if NYTimes is likely to pick G n Mike Shor 3

NYTimes CNN n G 50 100 , 80 0 60 , 100 In the role of NYTimes: q 94% Mike Shor S G S 0 , 60 , selected G 4

CNN NYTimes CNN n G 50 100 , 80 0 60 , 100 In the role of CNN: q Only Mike Shor S G S 0 , 60 , 31% selected S 5

Rationality & Common Knowledge NYTimes CNN S G S 0 , 60 , G 50 100 , 80 0 60 , 100 Rationality: n If you have a dominant strategy, play it n Doesn’t matter what opponent might do! n Mike Shor 6

Rationality & Common Knowledge NYTimes CNN S G S 0 , 60 , G 50 100 , 80 0 60 , 100 Common Knowledge: n Others will use their dominant strategy n q 94% did! q But … Mike Shor 7

Rationality & Common Knowledge NYTimes CNN S G S 0 , 60 , G 50 100 , 80 0 60 , 100 Common Knowledge: n Others will use their dominant strategy n q (usually) q Yichen Mike Shor earned 0 8

Why Play a Dominated Strategy? S G S 0 , 60 , G 50 100 , 80 0 60 , 100 “I am in competition” n “I am taking someone down with me” n “I lose 30, but they lose 100” n “Huh? I was confused” n Mike Shor 9

Historical Data n Rationality (NYTimes editors) q Vanderbilt: q Rutgers: q UConn: n Common Knowledge (CNN editors) q Vanderbilt: q Rutgers: q UConn: Mike Shor 90% pick Grenada 92% pick Grenada 89% pick Grenada 56% pick Scandal 45% pick Scandal 10

Future Data Mike Shor 11