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Intermediate Microeconomics


12. Game Theory


Game theory is a set of tools that are useful for analyzing stategic interactions, which includes parlor games, political negotiations, engaging in war, bargaining between unions and management, and economic behavior. In these Screencasts/Pencasts, we discuss the basics of game theory, define some key terms, provide payoff matrix examples for particular games, show how to find a Nash Equilibrium (when it exists), demonstrate a mixed-strategy Nash Equilibrium, discuss repeated games that are played a fixed and indefinite number of times and illustrate how the equilibrium of a game that is played sequentially is found.


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Terminology

This Screencast discusses some of the terminology used in game theory. [Play ScreenCast]


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Payoff Matrix of a Game

This Pencast provides an example of a payoff matrix for a particular game. We describe how to interpret the payoffs and illustrate an equilibrium in dominant strategies. [Play Pencast]


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Nash Equilibrium

This Pencast provides an example of a payoff matrix for a particular game. We describe how to interpret the payoffs and illustrate how to find a Nash Equilibrium. In this example, there are two Nash equilibria. [Play Pencast]


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No Nash Equilibrium

This Pencast provides an example of a payoff matrix for a particular game. We describe how to interpret the payoffs and illustrates that no Nash equilibrium exists. [Play Pencast]


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Mixed-Stategy Nash Equilibrium

This Pencast provides an example of a payoff matrix for a particular game. The game has two pure-strategy Nash equilibria. It is demonstrated how to find a mixed-strategy Nash equilibrium. [Play Pencast]


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Repeated Games

This Screencast discusses repeated games, the outcome of which depends on whether the game is played a fixed or an indefinited number of times. [Play ScreenCast]


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Sequential Game

This Pencast provides an example of a payoff matrix for a particular game. We then assuem that the game is played sequentially and demonstrate how to find the equilibrium that results. [Play Pencast]


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