
Edited version of lecture 2, 2009. In this lecture we analyzed and discussed behaviour and reasoning in the simple stop go game that we played out yesterday in class. The pace of the lecture is slow, we don't get into a lot of theoretical jargon (yet), but mostly concentrate on student reasoning processes.
We also introduced the key list of 6 questions that identify various pure types of situations of strategic interaction (games)- each of which involves its own distinctive strategic issues:
1. Is the game simultaneous or sequential game?- 2. Are interests always in conflict or are there opportunities for cooperation?
- 3. Is the game played once (single shot) or repeatedly?
- 4a. What kinds of, uncertainty, if any, exist in the game? 4b. Is information about the structure of the game, or ignorance, lack of such information, “unequal” (asymmetric)?
- 5. Are the rules of the game fixed or manipulable?
- 6. Are agreements to cooperate enforceable or not? cooperative vs non cooperative games
...as ever, more resources are located at
the Econ 223 class website