Strictly Dominant
When the payoff of one strategy offers a higher payoff regardless of what the other player plays.
Never Play a strictly dominated strategy.
Rationality
Rational outcomes can lead to outcomes that suck, prisoners dilemma- where playing dominant selfish strategy leads to a worse outcome than cooperating. Suggests not playing a dominated strategy
Weakly dominant
Same outcomes, bar one which offers a higher payoff for a specific strategy of the other player
Co-ordination problem
No dominant strategy
Common knowledge
Known of rules and the payoffs of each situation, each others utility functions
Best Response
Strategy that offers a better payoff to a specific strategy of player 2.
To find best response - draw diagram
Never play a best response that is strictly dominated
If no domination check mixed strategy.
Rationalizable
Nash Equilibrium
Best Response Condition 1
A strictly dominated strategy will never be BR
Best response condition 2
A strategy that is never BR doesn't mean it is strictly dominated
Nash Equilibrium
Mutually best response, just because BR for one Strat doesnt necessarily mean it's NE.
No willing deviation
x is as good to y as strategies goes
Nash Equilibrium (Weakly dominated)
A Nash equilibrium can be weakly dominated however not strictly dominated.
Iteration Deletion
Can delete some Nash equilibriums but not all. Gets rid of all weak NE
Taxpayer Game
Direct and strategic effects
Mixed Strategy
Randomisation of strategies. If never play one make sure to put in 0.
If mixed stat Nash equilibrium then, pure strategies should be also, will never offer a higher payoff.
Guess and Check Method
Some NE converge, segregated and mixed. Communication can help
Candidate problem
Best to enter if no one. If one other candidate, enter if equidistant to one another. If 3 not profitable to run.
Stable and Unstable
Segregated and mixed & integrated
Strict NE
No deviation makes better off. Change one players actions
Weak NE
Equal to another swap of them
ESS
Symmetric- won't be taken over by mutant population
Nature
In nature isn't efficient - cooperation
Strictly dominated strategy in ESS
won't be an ESS as will never be NE
If s' is a successful mutation doesn't mean that it will be ESS itself
...
Mixed Strat in ESS
Check condition 3
Best response and NE
Has to be mutually best response to be in NE
BR cannot be dominated
However there could be strategies that are not BR but doesnt have to be dominated.
BR and weak dominance
Can be weakly dominated
If s is evolutionary stable, cannot be dominated
However there can exist another pure strategy that is not weakly dominated by ESS
ESS always?
No sometimes there could be ESS
If asking for mixed strategy in 3
Decide how to delete one
Something that has survived deletion of dominated strategies
Doesn't mean its a best response , this is because there can be a strategy that is not best response but not dominated .
Common knowledge
suggests that no player will play a dominated strategy