Chapter 13 Game Theory博弈论.ppt

Chapter 13 Game Theory and Competitive Strategy Chapter Outline Gaming and Strategic Decision Dominant Strategies The Nash Equilibrium Revisited Repeated Games Sequential Games Threats, Commitments, and Credibility Entry Deterrence Bargaining Strategy 13.1 Gaming and Strategic Decisions Game -- Situation in which players (participants) make strategic decisions that take into account each other’s actions and responses. Payoff --Value associated with a possible outcome of a game that generates rewards or benefits for the player. Strategy -- Rule or plan of action for playing a game. Optimal strategy -- Strategy that maximizes player’s expected payoff. Cooperative game -- Game in which participants can negotiate binding contracts that allow them to plan joint strategies. Noncooperative game -- Game in which negotiation and enforcement of binding contracts between players are not possible. 13.2 Dominant Strategies Dominant strategy -- Strategy that is optimal no matter what an opponent does. Equilibrium in dominant strategies -- Outcome of a game in which each firm is doing the best it can regardless of what its competitors are doing. 13.3 The Nash Equilibrium Revisited Nash equilibrium -- Set of strategies or actions in which each firm does the best it can given its competitors’ actions. Each firm has no incentive to change its decision. Comparison of Nash equilibrium with an equilibrium in dominant strategies The Beach Location Game You (Y) and a competitor (C) plan to sell soft drinks on a beach. if sunbathers are spread evenly across the beach and will walk to the closest vendor, the two of you will locate next to each other at the center of the beach. This is the only  Nash equilibrium. If your competitor located at point A, you would want to move until you were just to her left, where you could capture three-fourths of all sales. but your competitor would then want to move back to the cent