Ü B U N G S A U F G A B E N. S p i e l t h e o r i e

Size: px
Start display at page:

Download "Ü B U N G S A U F G A B E N. S p i e l t h e o r i e"

Transcription

1 T E C H N I S C H E U N I V E R S I T Ä T D R E S D E N F A K U L T Ä T E L E K T R O T E C H N I K U N D I N F O R M A T I O N S T E C H N I K Ü B U N G S A U F G A B E N S p i e l t h e o r i e by Alessio Zappone Prof. Eduard A. Jorswieck Lehrstuhl Theoretische Nachrichtentechnik

2 Fakultät Elektrotechnik und Informationstechnik Institut für Nachrichtentechnik Lehrstuhl Theoretische Nachrichtentechnik Prof. Eduard A. Jorswieck, Alessio Zappone Übung zur Lehrveranstaltung Spieltheorie Exercise 1: Answer the following questions: 1. What is a game in strategic form? 2. What is a non-cooperative game? 3. What is a static game? 4. What is a game with complete information? 5. What is a pure strategy and a mixed strategy Nash equilibrium? Exercise 2: For the two-player, non-cooperative games represented by the following payoff matrices, determine pure-strategy and mixed-strategy Nash equilibria. a) Player 2 D C D (4,4) (10,2) Player 1 C (2,10) (8,8) b) Player 2 D C D (0,0) (10,2) Player 1 C (2,10) (6,6) c) Player 2 R P S R (0,0) (-1,1) (1,-1) Player 1 P (1,-1) (0,0) (-1,1) S (-1,1) (1,-1) (0,0) d) Player 2 P Q R S P (0,7) (2,5) (7,0) (0,1) Player 1 Q (5,2) (3,3) (5,2) (0,1) R (0,0) (2,5) (0,7) (0,1) S (7,0) (0,-2) (0,0) (10,-1)

3 Exercise 3: Consider one Base Station (BS) and two mobiles which communicate with the BS in two-phases. The channel coefficients are h 1 = 1 und h 2 = 0.5 and the noise power is σ 2. In the first phase (MAC pahse), MS 1 and MS 2 tune the transmit power p [0; 1] and q [0; 1], respectively. The corresponding achievable rates for MS 1 and MS 2 are ) R1 MAC p = log 2 (1 + σ q and ( R2 MAC = log q ) σ 2. + p In the second phase, the BS transmits the powers (1 p) und (1 q) to serve MS 1 and MS 2, respectively. The corresponding achievable rates are ) R1 BC 1 p = log 2 (1 + σ 2 + (1 q) and ( ) R2 BC 0.5(1 q) = log σ (1 p) The two mobiles do not cooperate with each other and their goal is to choose p and q to maximize their utilities, defined as the achievable sum-rate in the two phases. Formulate the problem as a non-cooperative game and compute the NE of the game.

4 Exercise 4: Consider two mobile stations MS 1 and MS 2 which communicate with a base station BS. The transmit for the mobiles are p 1 [0; P max ] and p 2 [0; P max ], with P max the maximum feasible transmit power for both mobiles. The noise power for each communication link is 1 and the channel power gains are h 1 and h 2. Mobiles MS 1 and MS 2 consume a hardware power of P c,1 and P c,2 to operate the devices. Each mobile is interested in maximizing its energy efficiency, defined as the ratio of the achievable rate over the consumed power. ( ) log 1 + p 1h 1 1+p 2 h 2 EE 1 = p 1 + P c,1 ( ) log 1 + p 2h 2 1+p 1 h 1 EE 2 = p 2 + P c,2 1. Formulate the problem as a non-cooperative game in normal form. 2. Establish whether the game admits a Nash equilibrium. Exercise 5: Give the definitions of: 1. Potential game. 2. Supermodular game. Exercise 6: Consider the same communication system as in Exercise 4, but assume now that the utility function of p mobile i is u i = f( i h i 1+p i h i ) cp i, with i = {1, 2}, and c a positive parameter. Formulate the problem as a non-cooperative game in normal form and find conditions on the function f such that the game is supermodular.

5 Exercise 7: Given the following two games with perfect information in extensive form 1. Write down the components of the game. 2. Write the game in strategic form. 3. Find the Nash equilibria. 4. Calculate the subgame perfect equilibria. Exercise 8: Consider two mobile stations MS 1 and MS 2, which communicate to a base station BS. Each MS i can choose whether to transmit a power p i = P or to not transmit, i.e. p i = 0. The BS implements a successive interference cancellation receiver and chooses whether to decode MS 1 first (1 2) or MS 2 first (2 1). The utility of MS i is: i j. The utility of the BS is with µ 0. { log(1 + pi ) µp i if j i u MSi = log(1 + p i 1+p j ) µp i if i j, u BS = µ(p 1 + p 2 ), 1. Formulate the game in extensive form. 2. Find the subgame perfect equilibria of the game.

6 Exercise 9: Define the following axioms 1. Linearity 2. Symmetry 3. Pareto Efficiency 4. Independence of Irrelevant Alternatives Exercise 10: Given a convex and compact payoff region U R 2 and d U, describe the Nash bargaining solution f(u, d). Exercise 11: Consider two communication pairs each composed of a transmitter (BS) and a receiver (MS), and both sharing two parallel frequency bands. The channel coefficients are α 11 = α 22 = β 11 = β 22 = 1, α 12 = α 21 = β 12 = β 21 = 0.5. The noise power in both bands is 1. Transmitter 1 transmits with power π 1 [0, 1] in the first band and a with power 1 π 1 [0, 1] in the second band. Transmitter 2 transmits with power π 2 [0, 1] in the first band and a with power 1 π 2 [0, 1] in the second band. The utility function for each communication system is the maximum achievable rate treating interference as noise. ( R 1 (π 1, π 2 ) = log π ) ( 1α 11 + log (1 π ) 1)β π 2 α 21 ( R 2 (π 1, π 2 ) = log π 2α π 1 α Find the Nash equilibrium of the game 1 + (1 π 2 )β 21 ) ( + log (1 π ) 2)β (1 π 1 )β Calculate the Nash bargaining solution of the game using the Nash equilibrium as a conflict point.

7 Exercise 12: Answer the following questions 1. What are coalitional games? 2. What is the difference between transferable utility and non-transferable utility? Exercise 13: Define the following concepts. 1. Core. 2. Nucleolus. Exercise 14: Each of n factories draws water from a lake and discharges waste into the same lake. Each factory requires clean water and pays kc to clean its water supply, where k is the number of factories that do not treat their waste before discharging it into the lake. The cost of treating the waste is b, with c b nc. 1. Model this situation as a coalitional game under the assumption that the worth v(s) of a coalition S is the highest payoff that v(s) can guarantee. 2. Find the conditions under which the game has a nonempty core and conditions under which the core is a singleton.

8 Exercise 15: Compute the Shapley value for the game {1, 2, 3, 4}, v wherein v({1, 2, 3, 4}) = 3 v(s) = 0 if S contains at most one player in {1, 2, 3} v(s) = 2 otherwise Exercise 16: Consider three men M = {m 1, m 2, m 3 } and three women W = {w 1, w 2, w 3 }. The preferences of men and women are given as follows P (m 1 ) = w 1, w 2, w 3 P (w 1 ) = m 2, m 1, m 3 P (m 2 ) = w 2, w 1, w 3 P (w 2 ) = m 1, m 2, m 3 P (m 3 ) = w 1, w 2, w 3 P (w 3 ) = m 1, m 2, m 3 Is the matching [(m 1, w 3 ), (m 2, w 2 ), (m 3, w 1 )] stable? Is the matching [(m 1, w 1 ), (m 2, w 2 ), (m 3, w 3 )] stable? Find two stable matchings.

On Selfish Behavior in CSMA/CA Networks

On Selfish Behavior in CSMA/CA Networks On Selfish Behavior in CSMA/CA Networks Mario Čagalj1 Saurabh Ganeriwal 2 Imad Aad 1 Jean-Pierre Hubaux 1 1 LCA-IC-EPFL 2 NESL-EE-UCLA March 17, 2005 - IEEE Infocom 2005 - Introduction CSMA/CA is the most

More information

Math 152: Applicable Mathematics and Computing

Math 152: Applicable Mathematics and Computing Math 152: Applicable Mathematics and Computing May 26, 2017 May 26, 2017 1 / 17 Announcements Homework 6 was posted on Wednesday, due next Wednesday. Last homework is Homework 7, posted next week (due

More information

Math 152: Applicable Mathematics and Computing

Math 152: Applicable Mathematics and Computing Math 152: Applicable Mathematics and Computing June 5, 2017 June 5, 2017 1 / 19 Announcements Dun s office hours on Thursday are extended, from 12.30 3.30pm (in SDSC East 294). My office hours on Wednesday

More information

Extensive Form Games I

Extensive Form Games I Extensive Form Games I Definition of Extensive Form Game a finite game tree X with nodes x X nodes are partially ordered and have a single root (minimal element) terminal nodes are z Z (maximal elements)

More information

Lecture Notes on Bargaining

Lecture Notes on Bargaining Lecture Notes on Bargaining Levent Koçkesen 1 Axiomatic Bargaining and Nash Solution 1.1 Preliminaries The axiomatic theory of bargaining originated in a fundamental paper by Nash (1950, Econometrica).

More information

Economics 201B Economic Theory (Spring 2017) Bargaining. Topics: the axiomatic approach (OR 15) and the strategic approach (OR 7).

Economics 201B Economic Theory (Spring 2017) Bargaining. Topics: the axiomatic approach (OR 15) and the strategic approach (OR 7). Economics 201B Economic Theory (Spring 2017) Bargaining Topics: the axiomatic approach (OR 15) and the strategic approach (OR 7). The axiomatic approach (OR 15) Nash s (1950) work is the starting point

More information

Long-Run versus Short-Run Player

Long-Run versus Short-Run Player Repeated Games 1 Long-Run versus Short-Run Player a fixed simultaneous move stage game Player 1 is long-run with discount factor δ actions a A a finite set 1 1 1 1 2 utility u ( a, a ) Player 2 is short-run

More information

TWO-PERSON COOPERATIVE GAMES

TWO-PERSON COOPERATIVE GAMES TWO-PERSON COOPERATIVE GAMES Part II: The Axiomatic Approach J. Nash 1953 The Approach Rather than solve the two-person cooperative game by analyzing the bargaining process, one can attack the problem

More information

Mathematical Economics - PhD in Economics

Mathematical Economics - PhD in Economics - PhD in Part 1: Supermodularity and complementarity in the one-dimensional and Paulo Brito ISEG - Technical University of Lisbon November 24, 2010 1 2 - Supermodular optimization 3 one-dimensional 4 Supermodular

More information

Title: The Castle on the Hill. Author: David K. Levine. Department of Economics UCLA. Los Angeles, CA phone/fax

Title: The Castle on the Hill. Author: David K. Levine. Department of Economics UCLA. Los Angeles, CA phone/fax Title: The Castle on the Hill Author: David K. Levine Department of Economics UCLA Los Angeles, CA 90095 phone/fax 310-825-3810 email dlevine@ucla.edu Proposed Running Head: Castle on the Hill Forthcoming:

More information

Network Calculus. A General Framework for Interference Management and Resource Allocation. Martin Schubert

Network Calculus. A General Framework for Interference Management and Resource Allocation. Martin Schubert Network Calculus A General Framework for Interference Management and Resource Allocation Martin Schubert Fraunhofer Institute for Telecommunications HHI, Berlin, Germany Fraunhofer German-Sino Lab for

More information

Nash Bargaining in Beamforming Games with Quantized CSI in Two-user Interference Channels

Nash Bargaining in Beamforming Games with Quantized CSI in Two-user Interference Channels Nash Bargaining in Beamforming Games with Quantized CSI in Two-user Interference Channels Jung Hoon Lee and Huaiyu Dai Department of Electrical and Computer Engineering, North Carolina State University,

More information

Microeconomics. 2. Game Theory

Microeconomics. 2. Game Theory Microeconomics 2. Game Theory Alex Gershkov http://www.econ2.uni-bonn.de/gershkov/gershkov.htm 18. November 2008 1 / 36 Dynamic games Time permitting we will cover 2.a Describing a game in extensive form

More information

The Water-Filling Game in Fading Multiple Access Channels

The Water-Filling Game in Fading Multiple Access Channels The Water-Filling Game in Fading Multiple Access Channels Lifeng Lai and Hesham El Gamal arxiv:cs/05203v [cs.it] 3 Dec 2005 February, 2008 Abstract We adopt a game theoretic approach for the design and

More information

Communication Games on the Generalized Gaussian Relay Channel

Communication Games on the Generalized Gaussian Relay Channel Communication Games on the Generalized Gaussian Relay Channel Dileep M. alathil Department of Electrical Engineering University of Southern California manisser@usc.edu Rahul Jain EE & ISE Departments University

More information

Algorithmic Game Theory and Applications. Lecture 4: 2-player zero-sum games, and the Minimax Theorem

Algorithmic Game Theory and Applications. Lecture 4: 2-player zero-sum games, and the Minimax Theorem Algorithmic Game Theory and Applications Lecture 4: 2-player zero-sum games, and the Minimax Theorem Kousha Etessami 2-person zero-sum games A finite 2-person zero-sum (2p-zs) strategic game Γ, is a strategic

More information

Game Theory. Bargaining Theory. ordi Massó. International Doctorate in Economic Analysis (IDEA) Universitat Autònoma de Barcelona (UAB)

Game Theory. Bargaining Theory. ordi Massó. International Doctorate in Economic Analysis (IDEA) Universitat Autònoma de Barcelona (UAB) Game Theory Bargaining Theory J International Doctorate in Economic Analysis (IDEA) Universitat Autònoma de Barcelona (UAB) (International Game Theory: Doctorate Bargainingin Theory Economic Analysis (IDEA)

More information

Microeconomics for Business Practice Session 3 - Solutions

Microeconomics for Business Practice Session 3 - Solutions Microeconomics for Business Practice Session - Solutions Instructor: Eloisa Campioni TA: Ugo Zannini University of Rome Tor Vergata April 8, 016 Exercise 1 Show that there are no mixed-strategy Nash equilibria

More information

MS&E 246: Lecture 12 Static games of incomplete information. Ramesh Johari

MS&E 246: Lecture 12 Static games of incomplete information. Ramesh Johari MS&E 246: Lecture 12 Static games of incomplete information Ramesh Johari Incomplete information Complete information means the entire structure of the game is common knowledge Incomplete information means

More information

6.207/14.15: Networks Lecture 11: Introduction to Game Theory 3

6.207/14.15: Networks Lecture 11: Introduction to Game Theory 3 6.207/14.15: Networks Lecture 11: Introduction to Game Theory 3 Daron Acemoglu and Asu Ozdaglar MIT October 19, 2009 1 Introduction Outline Existence of Nash Equilibrium in Infinite Games Extensive Form

More information

Bargaining, Contracts, and Theories of the Firm. Dr. Margaret Meyer Nuffield College

Bargaining, Contracts, and Theories of the Firm. Dr. Margaret Meyer Nuffield College Bargaining, Contracts, and Theories of the Firm Dr. Margaret Meyer Nuffield College 2015 Course Overview 1. Bargaining 2. Hidden information and self-selection Optimal contracting with hidden information

More information

COOPERATIVE GAME THEORY: CORE AND SHAPLEY VALUE

COOPERATIVE GAME THEORY: CORE AND SHAPLEY VALUE 1 / 54 COOPERATIVE GAME THEORY: CORE AND SHAPLEY VALUE Heinrich H. Nax hnax@ethz.ch & Bary S. R. Pradelski bpradelski@ethz.ch February 26, 2018: Lecture 2 2 / 54 What you did last week... There appear

More information

Game Theory. Greg Plaxton Theory in Programming Practice, Spring 2004 Department of Computer Science University of Texas at Austin

Game Theory. Greg Plaxton Theory in Programming Practice, Spring 2004 Department of Computer Science University of Texas at Austin Game Theory Greg Plaxton Theory in Programming Practice, Spring 2004 Department of Computer Science University of Texas at Austin Bimatrix Games We are given two real m n matrices A = (a ij ), B = (b ij

More information

1 Axiomatic Bargaining Theory

1 Axiomatic Bargaining Theory 1 Axiomatic Bargaining Theory 1.1 Basic definitions What we have seen from all these examples, is that we take a bargaining situation and we can describe the utilities possibility set that arises from

More information

Game Theory Correlated equilibrium 1

Game Theory Correlated equilibrium 1 Game Theory Correlated equilibrium 1 Christoph Schottmüller University of Copenhagen 1 License: CC Attribution ShareAlike 4.0 1 / 17 Correlated equilibrium I Example (correlated equilibrium 1) L R U 5,1

More information

6.254 : Game Theory with Engineering Applications Lecture 8: Supermodular and Potential Games

6.254 : Game Theory with Engineering Applications Lecture 8: Supermodular and Potential Games 6.254 : Game Theory with Engineering Applications Lecture 8: Supermodular and Asu Ozdaglar MIT March 2, 2010 1 Introduction Outline Review of Supermodular Games Reading: Fudenberg and Tirole, Section 12.3.

More information

Mixed Nash Equilibria

Mixed Nash Equilibria lgorithmic Game Theory, Summer 2017 Mixed Nash Equilibria Lecture 2 (5 pages) Instructor: Thomas Kesselheim In this lecture, we introduce the general framework of games. Congestion games, as introduced

More information

Economics 209A Theory and Application of Non-Cooperative Games (Fall 2013) Extensive games with perfect information OR6and7,FT3,4and11

Economics 209A Theory and Application of Non-Cooperative Games (Fall 2013) Extensive games with perfect information OR6and7,FT3,4and11 Economics 209A Theory and Application of Non-Cooperative Games (Fall 2013) Extensive games with perfect information OR6and7,FT3,4and11 Perfect information A finite extensive game with perfect information

More information

Game Theory Review Questions

Game Theory Review Questions Game Theory Review Questions Sérgio O. Parreiras All Rights Reserved 2014 0.1 Repeated Games What is the difference between a sequence of actions and a strategy in a twicerepeated game? Express a strategy

More information

1 Lattices and Tarski s Theorem

1 Lattices and Tarski s Theorem MS&E 336 Lecture 8: Supermodular games Ramesh Johari April 30, 2007 In this lecture, we develop the theory of supermodular games; key references are the papers of Topkis [7], Vives [8], and Milgrom and

More information

Unique Nash Implementation for a Class of Bargaining Solutions

Unique Nash Implementation for a Class of Bargaining Solutions Unique Nash Implementation for a Class of Bargaining Solutions Walter Trockel University of California, Los Angeles and Bielefeld University Mai 1999 Abstract The paper presents a method of supporting

More information

Lecture: Topics in Cooperative Game Theory

Lecture: Topics in Cooperative Game Theory Lecture: Topics in Cooperative Game Theory Martin Kohl University Leipzig November 5 2010 1 / 25 Overview PotSh Selfdu MCP Rec ExiSPS Potential of the Shapley value Selfduality Marginal Contributions Recursion

More information

Solutions to Exercises of Section III.1. a (13/4, 3) (22/4, 3/4). b (4, 10/4) (21/4, 2)

Solutions to Exercises of Section III.1. a (13/4, 3) (22/4, 3/4). b (4, 10/4) (21/4, 2) Solutions to Exercises of Section III.1. 1. The bimatrix is c d ( ) a (13/4, 3) (22/4, 3/4). b (4, 10/4) (21/4, 2) 2. (a) Player I s maxmin strategy is (1, 0) (i.e. row 1) guaranteeing him the safety level

More information

Game Theoretic Solutions for Precoding Strategies over the Interference Channel

Game Theoretic Solutions for Precoding Strategies over the Interference Channel Game Theoretic Solutions for Precoding Strategies over the Interference Channel Jie Gao, Sergiy A. Vorobyov, and Hai Jiang Department of Electrical & Computer Engineering, University of Alberta, Canada

More information

1 The General Definition

1 The General Definition MS&E 336 Lecture 1: Dynamic games Ramesh Johari April 4, 2007 1 The General Definition A dynamic game (or extensive game, or game in extensive form) consists of: A set of players N; A set H of sequences

More information

Nash Bargaining in Ordinal Environments

Nash Bargaining in Ordinal Environments Nash Bargaining in Ordinal Environments By Özgür Kıbrıs April 19, 2012 Abstract We analyze the implications of Nash s (1950) axioms in ordinal bargaining environments; there, the scale invariance axiom

More information

Copyright (C) 2013 David K. Levine This document is an open textbook; you can redistribute it and/or modify it under the terms of the Creative

Copyright (C) 2013 David K. Levine This document is an open textbook; you can redistribute it and/or modify it under the terms of the Creative Copyright (C) 2013 David K. Levine This document is an open textbook; you can redistribute it and/or modify it under the terms of the Creative Commons attribution license http://creativecommons.org/licenses/by/2.0/

More information

Background notes on bargaining

Background notes on bargaining ackground notes on bargaining Cooperative bargaining - bargaining theory related to game theory - nice book is Muthoo (1999) argaining theory with applications; - also, Dixit and Skeath's game theory text

More information

Bargaining Efficiency and the Repeated Prisoners Dilemma. Bhaskar Chakravorti* and John Conley**

Bargaining Efficiency and the Repeated Prisoners Dilemma. Bhaskar Chakravorti* and John Conley** Bargaining Efficiency and the Repeated Prisoners Dilemma Bhaskar Chakravorti* and John Conley** Published as: Bhaskar Chakravorti and John P. Conley (2004) Bargaining Efficiency and the repeated Prisoners

More information

Negotiation: Strategic Approach

Negotiation: Strategic Approach Negotiation: Strategic pproach (September 3, 007) How to divide a pie / find a compromise among several possible allocations? Wage negotiations Price negotiation between a seller and a buyer Bargaining

More information

Economics 703 Advanced Microeconomics. Professor Peter Cramton Fall 2017

Economics 703 Advanced Microeconomics. Professor Peter Cramton Fall 2017 Economics 703 Advanced Microeconomics Professor Peter Cramton Fall 2017 1 Outline Introduction Syllabus Web demonstration Examples 2 About Me: Peter Cramton B.S. Engineering, Cornell University Ph.D. Business

More information

Notes on Coursera s Game Theory

Notes on Coursera s Game Theory Notes on Coursera s Game Theory Manoel Horta Ribeiro Week 01: Introduction and Overview Game theory is about self interested agents interacting within a specific set of rules. Self-Interested Agents have

More information

Research Article Stackelberg Contention Games in Multiuser Networks

Research Article Stackelberg Contention Games in Multiuser Networks Hindawi Publishing Corporation EURASIP Journal on Advances in Signal Processing Volume 29, Article ID 35978, 5 pages doi:.55/29/35978 Research Article Stackelberg Contention Games in Multiuser Networks

More information

Selfishness vs Altruism vs Balance

Selfishness vs Altruism vs Balance Selfishness vs Altruism vs Balance Pradeep Dubey and Yair Tauman 18 April 2017 Abstract We give examples of strategic interaction which are beneficial for players who follow a "middle path" of balance

More information

Random Extensive Form Games and its Application to Bargaining

Random Extensive Form Games and its Application to Bargaining Random Extensive Form Games and its Application to Bargaining arxiv:1509.02337v1 [cs.gt] 8 Sep 2015 Itai Arieli, Yakov Babichenko October 9, 2018 Abstract We consider two-player random extensive form games

More information

Computational complexity of solution concepts

Computational complexity of solution concepts Game Theory and Algorithms, Lake Como School of Advanced Studies 7-11 September 2015, Campione d'italia Computational complexity of solution concepts Gianluigi Greco Dept. of Mathematics and Computer Science

More information

The Core of a Strategic Game *

The Core of a Strategic Game * The Core of a trategic Game * Parkash Chander January, 2014 Abstract This paper introduces and studies the γ-core of a general strategic game. It shows that a prominent class of games admit nonempty γ-cores.

More information

Computing Solution Concepts of Normal-Form Games. Song Chong EE, KAIST

Computing Solution Concepts of Normal-Form Games. Song Chong EE, KAIST Computing Solution Concepts of Normal-Form Games Song Chong EE, KAIST songchong@kaist.edu Computing Nash Equilibria of Two-Player, Zero-Sum Games Can be expressed as a linear program (LP), which means

More information

Game theory Lecture 19. Dynamic games. Game theory

Game theory Lecture 19. Dynamic games. Game theory Lecture 9. Dynamic games . Introduction Definition. A dynamic game is a game Γ =< N, x, {U i } n i=, {H i } n i= >, where N = {, 2,..., n} denotes the set of players, x (t) = f (x, u,..., u n, t), x(0)

More information

6.254 : Game Theory with Engineering Applications Lecture 7: Supermodular Games

6.254 : Game Theory with Engineering Applications Lecture 7: Supermodular Games 6.254 : Game Theory with Engineering Applications Lecture 7: Asu Ozdaglar MIT February 25, 2010 1 Introduction Outline Uniqueness of a Pure Nash Equilibrium for Continuous Games Reading: Rosen J.B., Existence

More information

Game Theory. Wolfgang Frimmel. Perfect Bayesian Equilibrium

Game Theory. Wolfgang Frimmel. Perfect Bayesian Equilibrium Game Theory Wolfgang Frimmel Perfect Bayesian Equilibrium / 22 Bayesian Nash equilibrium and dynamic games L M R 3 2 L R L R 2 2 L R L 2,, M,2, R,3,3 2 NE and 2 SPNE (only subgame!) 2 / 22 Non-credible

More information

MS&E 246: Lecture 4 Mixed strategies. Ramesh Johari January 18, 2007

MS&E 246: Lecture 4 Mixed strategies. Ramesh Johari January 18, 2007 MS&E 246: Lecture 4 Mixed strategies Ramesh Johari January 18, 2007 Outline Mixed strategies Mixed strategy Nash equilibrium Existence of Nash equilibrium Examples Discussion of Nash equilibrium Mixed

More information

Applied cooperative game theory:

Applied cooperative game theory: Applied cooperative game theory: The gloves game Harald Wiese University of Leipzig April 2010 Harald Wiese (Chair of Microeconomics) Applied cooperative game theory: April 2010 1 / 29 Overview part B:

More information

Lower Semicontinuity of the Solution Set Mapping in Some Optimization Problems

Lower Semicontinuity of the Solution Set Mapping in Some Optimization Problems Lower Semicontinuity of the Solution Set Mapping in Some Optimization Problems Roberto Lucchetti coauthors: A. Daniilidis, M.A. Goberna, M.A. López, Y. Viossat Dipartimento di Matematica, Politecnico di

More information

4: Dynamic games. Concordia February 6, 2017

4: Dynamic games. Concordia February 6, 2017 INSE6441 Jia Yuan Yu 4: Dynamic games Concordia February 6, 2017 We introduce dynamic game with non-simultaneous moves. Example 0.1 (Ultimatum game). Divide class into two groups at random: Proposers,

More information

Theory of Auctions. Carlos Hurtado. Jun 23th, Department of Economics University of Illinois at Urbana-Champaign

Theory of Auctions. Carlos Hurtado. Jun 23th, Department of Economics University of Illinois at Urbana-Champaign Theory of Auctions Carlos Hurtado Department of Economics University of Illinois at Urbana-Champaign hrtdmrt2@illinois.edu Jun 23th, 2015 C. Hurtado (UIUC - Economics) Game Theory On the Agenda 1 Formalizing

More information

6.207/14.15: Networks Lecture 10: Introduction to Game Theory 2

6.207/14.15: Networks Lecture 10: Introduction to Game Theory 2 6.207/14.15: Networks Lecture 10: Introduction to Game Theory 2 Daron Acemoglu and Asu Ozdaglar MIT October 14, 2009 1 Introduction Outline Mixed Strategies Existence of Mixed Strategy Nash Equilibrium

More information

SF2972 Game Theory Written Exam with Solutions June 10, 2011

SF2972 Game Theory Written Exam with Solutions June 10, 2011 SF97 Game Theory Written Exam with Solutions June 10, 011 Part A Classical Game Theory Jörgen Weibull and Mark Voorneveld 1. Finite normal-form games. (a) What are N, S and u in the definition of a finite

More information

Stackelberg oligopoly TU-games: characterization of the core and 1-concavity of the dual game

Stackelberg oligopoly TU-games: characterization of the core and 1-concavity of the dual game Stackelberg oligopoly TU-games: characterization of the core and 1-concavity of the dual game Theo Driessen, Dongshuang Hou, Aymeric Lardon To cite this version: Theo Driessen, Dongshuang Hou, Aymeric

More information

Solving Extensive Form Games

Solving Extensive Form Games Chapter 8 Solving Extensive Form Games 8.1 The Extensive Form of a Game The extensive form of a game contains the following information: (1) the set of players (2) the order of moves (that is, who moves

More information

Ph.D. Preliminary Examination MICROECONOMIC THEORY Applied Economics Graduate Program June 2016

Ph.D. Preliminary Examination MICROECONOMIC THEORY Applied Economics Graduate Program June 2016 Ph.D. Preliminary Examination MICROECONOMIC THEORY Applied Economics Graduate Program June 2016 The time limit for this exam is four hours. The exam has four sections. Each section includes two questions.

More information

Symmetries and the Complexity of Pure Nash Equilibrium

Symmetries and the Complexity of Pure Nash Equilibrium Symmetries and the Complexity of Pure Nash Equilibrium Felix Brandt a Felix Fischer a, Markus Holzer b a Institut für Informatik, Universität München, Oettingenstr. 67, 80538 München, Germany b Institut

More information

The Nash Bargaining Solution in Gen Title Cooperative Games. Citation Journal of Economic Theory, 145(6):

The Nash Bargaining Solution in Gen Title Cooperative Games. Citation Journal of Economic Theory, 145(6): The Nash Bargaining Solution in Gen Title Cooperative Games Author(s) OKADA, Akira Citation Journal of Economic Theory, 145(6): Issue 2010-11 Date Type Journal Article Text Version author URL http://hdl.handle.net/10086/22200

More information

Decentralized K-User Gaussian Multiple Access Channels

Decentralized K-User Gaussian Multiple Access Channels Decentralized K-User Gaussian Multiple Access Channels Selma Belhadj Amor, Samir Perlaza To cite this version: Selma Belhadj Amor, Samir Perlaza. Decentralized K-User Gaussian Multiple Access Channels.

More information

EC319 Economic Theory and Its Applications, Part II: Lecture 7

EC319 Economic Theory and Its Applications, Part II: Lecture 7 EC319 Economic Theory and Its Applications, Part II: Lecture 7 Leonardo Felli NAB.2.14 27 February 2014 Signalling Games Consider the following Bayesian game: Set of players: N = {N, S, }, Nature N strategy

More information

Nash Demand Game and the Kalai-Smorodinsky Solution

Nash Demand Game and the Kalai-Smorodinsky Solution Florida International University FIU Digital Commons Economics Research Working Paper Series Department of Economics 8-9-2008 Nash Demand Game and the Kalai-Smorodinsky Solution Nejat Anbarci Department

More information

Basic Game Theory. Kate Larson. January 7, University of Waterloo. Kate Larson. What is Game Theory? Normal Form Games. Computing Equilibria

Basic Game Theory. Kate Larson. January 7, University of Waterloo. Kate Larson. What is Game Theory? Normal Form Games. Computing Equilibria Basic Game Theory University of Waterloo January 7, 2013 Outline 1 2 3 What is game theory? The study of games! Bluffing in poker What move to make in chess How to play Rock-Scissors-Paper Also study of

More information

On the Nash Stability in the Hedonic Coalition Formation Games

On the Nash Stability in the Hedonic Coalition Formation Games On the Nash Stability in the Hedonic Coalition Formation Games Cengis Hasan, Eitan Altman, Jean-Marie Gorce Inria, University of Lyon, INSA-Lyon, 6 Avenue des Arts 6961 Villeurbanne Cedex, France Phone:

More information

The Interdisciplinary Center, Herzliya School of Economics Advanced Microeconomics Fall Bargaining The Axiomatic Approach

The Interdisciplinary Center, Herzliya School of Economics Advanced Microeconomics Fall Bargaining The Axiomatic Approach The Interdisciplinary Center, Herzliya School of Economics Advanced Microeconomics Fall 2011 Bargaining The Axiomatic Approach Bargaining problem Nash s (1950) work is the starting point for formal bargaining

More information

A remark on discontinuous games with asymmetric information and ambiguity

A remark on discontinuous games with asymmetric information and ambiguity Econ Theory Bull DOI 10.1007/s40505-016-0100-5 RESEARCH ARTICLE A remark on discontinuous games with asymmetric information and ambiguity Wei He 1 Nicholas C. Yannelis 1 Received: 7 February 2016 / Accepted:

More information

Signaling Design of Two-Way MIMO Full-Duplex Channel: Optimality Under Imperfect Transmit Front-End Chain

Signaling Design of Two-Way MIMO Full-Duplex Channel: Optimality Under Imperfect Transmit Front-End Chain DRAFT 1 Signaling Design of Two-Way MIMO Full-Duplex Channel: Optimality Under Imperfect Transmit Front-End Chain Shuqiao Jia and Behnaam Aazhang, arxiv:1506.00330v1 [cs.it] 1 Jun 2015 Abstract We derive

More information

Implementation of the Ordinal Shapley Value for a three-agent economy 1

Implementation of the Ordinal Shapley Value for a three-agent economy 1 Implementation of the Ordinal Shapley Value for a three-agent economy 1 David Pérez-Castrillo 2 Universitat Autònoma de Barcelona David Wettstein 3 Ben-Gurion University of the Negev April 2005 1 We gratefully

More information

Solution to Tutorial 9

Solution to Tutorial 9 Solution to Tutorial 9 2011/2012 Semester I MA4264 Game Theory Tutor: Xiang Sun October 27, 2011 Exercise 1. A buyer and a seller have valuations v b and v s. It is common knowledge that there are gains

More information

COOPERATIVE GAMES. Department of Economics, MIT. 1. Definitions

COOPERATIVE GAMES. Department of Economics, MIT. 1. Definitions COOPERATIVE GAMES MIHAI MANEA 1. Definitions A coalitional (or cooperative) game is a model of interacting decision-makers that focuses on the behavior of groups of players. N denotes the set of players.

More information

A Characterization of the Nash Bargaining Solution Published in Social Choice and Welfare, 19, , (2002)

A Characterization of the Nash Bargaining Solution Published in Social Choice and Welfare, 19, , (2002) A Characterization of the Nash Bargaining Solution Published in Social Choice and Welfare, 19, 811-823, (2002) Nir Dagan Oscar Volij Eyal Winter August 20, 2001 Abstract We characterize the Nash bargaining

More information

6 The Principle of Optimality

6 The Principle of Optimality 6 The Principle of Optimality De nition A T shot deviation from a strategy s i is a strategy bs i such that there exists T such that bs i (h t ) = s i (h t ) for all h t 2 H with t T De nition 2 A one-shot

More information

Introduction to Game Theory Lecture Note 2: Strategic-Form Games and Nash Equilibrium (2)

Introduction to Game Theory Lecture Note 2: Strategic-Form Games and Nash Equilibrium (2) Introduction to Game Theory Lecture Note 2: Strategic-Form Games and Nash Equilibrium (2) Haifeng Huang University of California, Merced Best response functions: example In simple games we can examine

More information

Game Theory: introduction and applications to computer networks

Game Theory: introduction and applications to computer networks Game Theory: introduction and applications to computer networks Introduction Giovanni Neglia INRIA EPI Maestro 27 January 2014 Part of the slides are based on a previous course with D. Figueiredo (UFRJ)

More information

Spectrum Sharing Games on the Interference Channel

Spectrum Sharing Games on the Interference Channel Spectrum Sharing Games on the Interference Channel Mehdi Bennis +, Mael Le Treust, Samson Lasaulce, Merouane Debbah and Jorma Lilleberg + Centre for Wireless Communications, University of Oulu, Oulu, Finland

More information

Writing Game Theory in L A TEX

Writing Game Theory in L A TEX Writing Game Theory in L A TEX Thiago Silva First Version: November 22, 2015 This Version: November 13, 2017 List of Figures and Tables 1 2x2 Matrix: Prisoner s ilemma Normal-Form Game............. 3 2

More information

SF2972 Game Theory Exam with Solutions March 15, 2013

SF2972 Game Theory Exam with Solutions March 15, 2013 SF2972 Game Theory Exam with s March 5, 203 Part A Classical Game Theory Jörgen Weibull and Mark Voorneveld. (a) What are N, S and u in the definition of a finite normal-form (or, equivalently, strategic-form)

More information

Transboundary Externalities and Property Rights: An International River Pollution Model

Transboundary Externalities and Property Rights: An International River Pollution Model TI 2012-006/1 Tinbergen Institute Discussion Paper Transboundary Externalities and Property Rights: An International River Pollution Model Gerard van der Laan Nigel Moes Faculty of Economics and Business

More information

Game Theory: Spring 2017

Game Theory: Spring 2017 Game Theory: Spring 2017 Ulle Endriss Institute for Logic, Language and Computation University of Amsterdam Ulle Endriss 1 Plan for Today Today we are going to review solution concepts for coalitional

More information

Econ 618: Correlated Equilibrium

Econ 618: Correlated Equilibrium Econ 618: Correlated Equilibrium Sunanda Roy 1 Basic Concept of a Correlated Equilibrium MSNE assumes players use a random device privately and independently, that tells them which strategy to choose for

More information

Interval values for strategic games in which players cooperate

Interval values for strategic games in which players cooperate Interval values for strategic games in which players cooperate Luisa Carpente 1 Balbina Casas-Méndez 2 Ignacio García-Jurado 2 Anne van den Nouweland 3 September 22, 2005 Abstract In this paper we propose

More information

Refinements - change set of equilibria to find "better" set of equilibria by eliminating some that are less plausible

Refinements - change set of equilibria to find better set of equilibria by eliminating some that are less plausible efinements efinements - change set of equilibria to find "better" set of equilibria by eliminating some that are less plausible Strategic Form Eliminate Weakly Dominated Strategies - Purpose - throwing

More information

Distributed power allocation for D2D communications underlaying/overlaying OFDMA cellular networks

Distributed power allocation for D2D communications underlaying/overlaying OFDMA cellular networks Distributed power allocation for D2D communications underlaying/overlaying OFDMA cellular networks Marco Moretti, Andrea Abrardo Dipartimento di Ingegneria dell Informazione, University of Pisa, Italy

More information

Methodologies for Analyzing Equilibria in Wireless Games

Methodologies for Analyzing Equilibria in Wireless Games Methodologies for Analyzing Equilibria in Wireless Games Samson Lasaulce, Merouane Debbah, Eitan Altman To cite this version: Samson Lasaulce, Merouane Debbah, Eitan Altman. Methodologies for Analyzing

More information

Computational Properties of Quasi-Strict Equilibrium

Computational Properties of Quasi-Strict Equilibrium Computational roperties of Quasi-Strict Equilibrium Felix Brandt and Felix Fischer Institut für Informatik, Universität München 80538 München, Germany {brandtf,fischerf}@tcs.ifi.lmu.de Abstract. This paper

More information

Implementing the Nash Programin Stochastic Games

Implementing the Nash Programin Stochastic Games Notes for Implementing the Nash Programin Stochastic Games Dilip Abreu (Princeton) and David Pearce (NYU) February 2009. Preliminary. Not for circulation. 1 1. Introduction Nash (1953) considers a scenario

More information

Game Theory. Professor Peter Cramton Economics 300

Game Theory. Professor Peter Cramton Economics 300 Game Theory Professor Peter Cramton Economics 300 Definition Game theory is the study of mathematical models of conflict and cooperation between intelligent and rational decision makers. Rational: each

More information

Convexity of Bertrand oligopoly TU-games with differentiated products

Convexity of Bertrand oligopoly TU-games with differentiated products Convexity of Bertrand oligopoly TU-games with differentiated products Aymeric Lardon To cite this version: Aymeric Lardon. Convexity of Bertrand oligopoly TU-games with differentiated products. Working

More information

Individual Rationality in Collective Choice

Individual Rationality in Collective Choice Individual Rationality in Collective Choice Hiroki Nishimura February 21, 2014 Abstract This paper studies the rationality of an individual player in sequential games of perfect information played with

More information

EconS Advanced Microeconomics II Handout on Subgame Perfect Equilibrium (SPNE)

EconS Advanced Microeconomics II Handout on Subgame Perfect Equilibrium (SPNE) EconS 3 - Advanced Microeconomics II Handout on Subgame Perfect Equilibrium (SPNE). Based on MWG 9.B.3 Consider the three-player nite game of perfect information depicted in gure. L R Player 3 l r a b

More information

Information Theory Meets Game Theory on The Interference Channel

Information Theory Meets Game Theory on The Interference Channel Information Theory Meets Game Theory on The Interference Channel Randall A. Berry Dept. of EECS Northwestern University e-mail: rberry@eecs.northwestern.edu David N. C. Tse Wireless Foundations University

More information

Game theory is a field of applied mathematics that

Game theory is a field of applied mathematics that [ Gesualdo Scutari, Daniel P. Palomar, Jong-Shi Pang, and Francisco Facchinei ] Flexible Design of Cognitive Radio Wireless Systems [From game theory to variational inequality theory] Game theory is a

More information

A Multi-Leader Stackelberg Game for Two-Hop Systems with Wireless Energy Transfer

A Multi-Leader Stackelberg Game for Two-Hop Systems with Wireless Energy Transfer A Multi-Leader Stacelberg Game for Two-Hop Systems with Wireless Energy Transfer Shiyang Leng and Aylin Yener Wireless Communications and Networing Laboratory WCAN School of Electrical Engineering and

More information

Correlated Equilibria: Rationality and Dynamics

Correlated Equilibria: Rationality and Dynamics Correlated Equilibria: Rationality and Dynamics Sergiu Hart June 2010 AUMANN 80 SERGIU HART c 2010 p. 1 CORRELATED EQUILIBRIA: RATIONALITY AND DYNAMICS Sergiu Hart Center for the Study of Rationality Dept

More information

Static Model of Decision-making over the Set of Coalitional Partitions

Static Model of Decision-making over the Set of Coalitional Partitions Applied Mathematical ciences, Vol. 8, 2014, no. 170, 8451-8457 HIKARI Ltd, www.m-hiari.com http://dx.doi.org/10.12988/ams.2014.410889 tatic Model of Decision-maing over the et of Coalitional Partitions

More information

Chapter 9. Mixed Extensions. 9.1 Mixed strategies

Chapter 9. Mixed Extensions. 9.1 Mixed strategies Chapter 9 Mixed Extensions We now study a special case of infinite strategic games that are obtained in a canonic way from the finite games, by allowing mixed strategies. Below [0, 1] stands for the real

More information