6-9: Applications, Chance, Constant Sum Games, Mixed Strategies and Nonzero Sum Games

Question 1

What is an incredible promise?

Answer 1

A promise that doesn’t conform to the best strategy for that player

Question 2

What are the three different kinds of uncertainty?

Answer 2

Outcome uncertainty, structure uncertainty (games of incomplete information), strategy uncertainty

Question 3

What is expected value?

Answer 3

Average value given probability

Question 4

How is the minimax theory used with mixed strategy?

Answer 4

Solve for the system of equations using the relationship between probability and outcome for both players in order to find strategies with the same security value in zero sum games

Question 5

What happens if minimaxing is used on a nonzero sum game?

Answer 5

An inherently stable equilibrium results; if one player deviates, it will drive everyone else towards a pure strategy with a more stable equilibrium

Question 6

What is payoff dominance?

Answer 6

An equilibrium strategy is payoff dominant when it yields a better payoff for all players than other equilibria