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Recap Example Matrix Games Pareto Optimality Best Response and Nash Equilibrium Game Theory intro CPSC 532A Lecture 3 Game Theory intro CPSC 532A Lecture 3, Slide 1 Recap Example Matrix Games Pareto Optimality Best Response and Nash Equilibrium Lecture Overview 1 Recap 2 Example Matrix Games 3 Pareto Optimality 4 Best Response and Nash Equilibrium Game Theory intro CPSC 532A Lecture 3, Slide 2 Recap Example Matrix Games Pareto Optimality Best Response and Nash Equilibrium Defining Games Finite, n-person game: hN, A, ui: N is a finite set of n players, indexed by i A = A1 × . . . × An , where Ai is the action set for player i (a1 , . . . , an ) ∈ A is an action profile, and so A is the space of action profiles u = hu1 , . . . , un i, a utility function for each player, where ui : A 7→ R Writing a 2-player game as a matrix: row player is player 1, column player is player 2 rows are actions a ∈ A1 , columns are a0 ∈ A2 cells are outcomes, written as a tuple of utility values for each player Game Theory intro CPSC 532A Lecture 3, Slide 3 implementation) and D (for using a Defective one). If both you and your colleague Recap Example Matrix Games Pareto Optimality Best Response and Nash Equilibrium adopt C then your average packet delay is 1ms (millisecond). If you both adopt D the delay is 3ms, because of additional overhead at the network router. Finally, if one of Games in Matrix Form you adopts D and the other adopts C then the D adopter will experience no delay at all, but the C adopter will experience a delay of 4ms. These consequences are shown in Figure 3.1. Your options are the two rows, and the TCP Backoff written as acell, matrix (“normal your Here’s colleague’s options are theGame columns. In each the first number represents form”). your payoff (or, minus your delay), and the second number represents your colleague’s payoff.1 C D C −1, −1 −4, 0 D 0, −4 −3, −3 Figure 3.1 The TCP user’s (aka the Prisoner’s) Dilemma. It’s an example prisoner’s dilemma. Given these options of what should you adopt, C or D? Does it depend on what you think your colleague will do? Furthermore, from the perspective of the network operator, what kind of behavior can he expect from the two users? Will any two users behave Game Theory when intro CPSC 532A Lecture 3, Slide 4 the same presented with this scenario? Will the behavior change if the network Recap Example Matrix Games Pareto Optimality Best Response and Nash Equilibrium Lecture Overview 1 Recap 2 Example Matrix Games 3 Pareto Optimality 4 Best Response and Nash Equilibrium Game Theory intro CPSC 532A Lecture 3, Slide 5 Recap Example Matrix Games Pareto Optimality Best Response and Nash Equilibrium Games of Pure Competition Players have exactly opposed interests There must be precisely two players (otherwise they can’t have exactly opposed interests) For all action profiles a ∈ A, u1 (a) + u2 (a) = c for some constant c Special case: zero sum Thus, we only need to store a utility function for one player in a sense, it’s a one-player game Game Theory intro CPSC 532A Lecture 3, Slide 6 Example Matrix Games Optimality Best Response and Nash Equilibrium theRecap abbreviation we must explicit state Pareto whether this matrix represents a common-payoff game or a zero-sum one. Matching A classical Pennies example of a zero-sum game is the game of matching pennies. In this game, each of the two players has a penny, and independently chooses to display either heads or tails. The two players then compare their pennies. If they are the same then player 1 pockets both, and otherwise player 2 pockets them. The payoff matrix is shown in Figure One player 3.5. wants to match; the other wants to mismatch. Heads Tails Heads 1 −1 Tails −1 1 Figure 3.5 Matching Pennies game. The popular children’s game of Rock, Paper, Scissors, also known as Rochambeau, provides a three-strategy generalization of the matching-pennies game. The payoff matrix of this zero-sum game is shown in Figure 3.6. In this game, each of the two players can choose either Rock, Paper, or Scissors. If both players choose the same Game Theory intro CPSC 532A Lecture 3, Slide 7 Example Matrix Games Optimality Best Response and Nash Equilibrium theRecap abbreviation we must explicit state Pareto whether this matrix represents a common-payoff game or a zero-sum one. Matching A classical Pennies example of a zero-sum game is the game of matching pennies. In this game, each of the two players has a penny, and independently chooses to display either heads or tails. The two players then compare their pennies. If they are the same then player 1 pockets both, and otherwise player 2 pockets them. The payoff matrix is shown in Figure One player 3.5. wants to match; the other wants to mismatch. Heads Tails Heads 1 −1 Tails −1 1 Figure 3.5 Matching Pennies game. Play this game with someone near you, repeating five times. The popular children’s game of Rock, Paper, Scissors, also known as Rochambeau, provides a three-strategy generalization of the matching-pennies game. The payoff matrix of this zero-sum game is shown in Figure 3.6. In this game, each of the two players can choose either Rock, Paper, or Scissors. If both players choose the same Game Theory intro CPSC 532A Lecture 3, Slide 7 Recap Example Matrix Games Pareto Optimality Best Response and Nash Equilibrium Rock-Paper-Scissors 3 Generalized matching pennies. Competition and Coordination: Normal form games Rock Paper Scissors Rock 0 −1 1 Paper 1 0 −1 −1 1 0 Scissors Figure 3.6 Rock, Paper, Scissors game. ...Believe it or not, there’s an annual international competition for VG GL this game! Game Theory intro VG 2, 1 0, 0 CPSC 532A Lecture 3, Slide 8 Recap Example Matrix Games Pareto Optimality Best Response and Nash Equilibrium Games of Cooperation Players have exactly the same interests. no conflict: all players want the same things ∀a ∈ A, ∀i, j, ui (a) = uj (a) we often write such games with a single payoff per cell why are such games “noncooperative”? Game Theory intro CPSC 532A Lecture 3, Slide 9 Recap that is maximally Example Matrixbeneficial Games Pareto Optimality Best Response and Nash Equilibrium action to all. Because of their special nature, we often represent common value games with an Coordination abbreviated form ofGame the matrix in which we list only one payoff in each of the cells. As an example, imagine two drivers driving towards each other in a country without traffic rules, and who must independently decide whether to drive on the left or on the right. If the players choose the same side (left or right) they have some high utility, and Which side of athe should you matrix drive on? otherwise they have lowroad utility. The game is shown in Figure 3.4. Left Right Left 1 0 Right 0 1 Figure 3.4 Coordination game. At the other end of the spectrum from pure coordination games lie zero-sum games, which (bearing in mind the comment we made earlier about positive affine transformations) are more properly called constant-sum games. Unlike common-payoff games, Game Theory intro c Shoham and Leyton-Brown, 2006 CPSC 532A Lecture 3, Slide 10 Recap that is maximally Example Matrixbeneficial Games Pareto Optimality Best Response and Nash Equilibrium action to all. Because of their special nature, we often represent common value games with an Coordination abbreviated form ofGame the matrix in which we list only one payoff in each of the cells. As an example, imagine two drivers driving towards each other in a country without traffic rules, and who must independently decide whether to drive on the left or on the right. If the players choose the same side (left or right) they have some high utility, and Which side of athe should you matrix drive on? otherwise they have lowroad utility. The game is shown in Figure 3.4. Left Right Left 1 0 Right 0 1 Figure 3.4 Coordination game. Play this game with someone near you. Then find a new partner Atand the other of the spectrum from in pure coordination games lie zero-sum games, play end again. Play five times total. which (bearing in mind the comment we made earlier about positive affine transformations) are more properly called constant-sum games. Unlike common-payoff games, Game Theory intro c Shoham and Leyton-Brown, 2006 CPSC 532A Lecture 3, Slide 10 0 Rock Recap −1 Example Matrix Games Pareto Optimality 0 General Games: Paper Battle of1 the Sexes Scissors 1 −1 1 Best Response and Nash Equilibrium −1 0 The most interesting games combine elements of cooperation and competition. Figure 3.6 Rock, Paper, Scissors game. B F B 2, 1 0, 0 F 0, 0 1, 2 Figure 3.7 Battle of the Sexes game. Strategies in normal-form games We have so far defined the actions available to each player in a game, but not yet his set of strategies, or his available choices. Certainly one kind of strategy is to3, select Game Theory intro CPSC 532A Lecture Slide 11 0 Rock Recap −1 Example Matrix Games Pareto Optimality 0 General Games: Paper Battle of1 the Sexes Scissors 1 −1 1 Best Response and Nash Equilibrium −1 0 The most interesting games combine elements of cooperation and competition. Figure 3.6 Rock, Paper, Scissors game. B F B 2, 1 0, 0 F 0, 0 1, 2 Figure 3.7 Battle of the Sexes game. Play this game with someone near you. Then find a new partner and play again. Play five times in total. Strategies in normal-form games We have so far defined the actions available to each player in a game, but not yet his set of strategies, or his available choices. Certainly one kind of strategy is to3, select Game Theory intro CPSC 532A Lecture Slide 11 Recap Example Matrix Games Pareto Optimality Best Response and Nash Equilibrium Lecture Overview 1 Recap 2 Example Matrix Games 3 Pareto Optimality 4 Best Response and Nash Equilibrium Game Theory intro CPSC 532A Lecture 3, Slide 12 Recap Example Matrix Games Pareto Optimality Best Response and Nash Equilibrium Analyzing Games We’ve defined some canonical games, and thought about how to play them. Now let’s examine the games from the outside From the point of view of an outside observer, can some outcomes of a game be said to be better than others? Game Theory intro CPSC 532A Lecture 3, Slide 13 Recap Example Matrix Games Pareto Optimality Best Response and Nash Equilibrium Analyzing Games We’ve defined some canonical games, and thought about how to play them. Now let’s examine the games from the outside From the point of view of an outside observer, can some outcomes of a game be said to be better than others? we have no way of saying that one agent’s interests are more important than another’s intuition: imagine trying to find the revenue-maximizing outcome when you don’t know what currency has been used to express each agent’s payoff Are there situations where we can still prefer one outcome to another? Game Theory intro CPSC 532A Lecture 3, Slide 13 Recap Example Matrix Games Pareto Optimality Best Response and Nash Equilibrium Pareto Optimality Idea: sometimes, one outcome o is at least as good for every agent as another outcome o0 , and there is some agent who strictly prefers o to o0 in this case, it seems reasonable to say that o is better than o0 we say that o Pareto-dominates o0 . Game Theory intro CPSC 532A Lecture 3, Slide 14 Recap Example Matrix Games Pareto Optimality Best Response and Nash Equilibrium Pareto Optimality Idea: sometimes, one outcome o is at least as good for every agent as another outcome o0 , and there is some agent who strictly prefers o to o0 in this case, it seems reasonable to say that o is better than o0 we say that o Pareto-dominates o0 . An outcome o∗ is Pareto-optimal if there is no other outcome that Pareto-dominates it. Game Theory intro CPSC 532A Lecture 3, Slide 14 Recap Example Matrix Games Pareto Optimality Best Response and Nash Equilibrium Pareto Optimality Idea: sometimes, one outcome o is at least as good for every agent as another outcome o0 , and there is some agent who strictly prefers o to o0 in this case, it seems reasonable to say that o is better than o0 we say that o Pareto-dominates o0 . An outcome o∗ is Pareto-optimal if there is no other outcome that Pareto-dominates it. can a game have more than one Pareto-optimal outcome? Game Theory intro CPSC 532A Lecture 3, Slide 14 Recap Example Matrix Games Pareto Optimality Best Response and Nash Equilibrium Pareto Optimality Idea: sometimes, one outcome o is at least as good for every agent as another outcome o0 , and there is some agent who strictly prefers o to o0 in this case, it seems reasonable to say that o is better than o0 we say that o Pareto-dominates o0 . An outcome o∗ is Pareto-optimal if there is no other outcome that Pareto-dominates it. can a game have more than one Pareto-optimal outcome? does every game have at least one Pareto-optimal outcome? Game Theory intro CPSC 532A Lecture 3, Slide 14 equences in Matrix Figure 3.1. YourPareto options are the twoBest rows, andand Nash Equilibrium Recap are shown Example Games Optimality Response ue’s options are the columns. In each cell, the first number represents or, Pareto minus yourOptimal delay), and the second number your colleague’s Outcomes in represents Example Games C D C −1, −1 −4, 0 D 0, −4 −3, −3 Figure 3.1 The TCP user’s (aka the Prisoner’s) Dilemma. e options what should you adopt, C or D? Does it depend on what you lleague will do? Furthermore, from the perspective of the network operaof behavior can he expect from the two users? Will any two users behave n presented with this scenario? Will the behavior change if the network ws the users to communicate with each other before making a decision? hanges to the delays would the users’ decisions still be the same? How rs behave if they have the opportunity to face this same decision with the part multiple times? Do answers to the above questions depend on how Game Theory intro CPSC 532A Lecture 3, Slide 15 As an example, two drivers towards each other in a cou equences in Matrix Figure 3.1. imagine YourPareto options are thedriving twoBest rows, andand Recap are shown Example Games Optimality Response Nash Equilibrium traffic rules, and who must independently decide whether to drive on the l ue’s options are the columns. In each cell, the first number represents right. If the players choose the same side (left or right) they have some hig or, Pareto minus yourOptimal delay), and the second number your colleague’s Outcomes in represents Example Games otherwise they have a low utility. The game matrix is shown in Figure 3.4 C D C −1, −1 −4, 0 D 0, −4 −3, −3 Left Right Left 1 0 Right 0 1 3.4 Coordination game. Figure 3.1 The TCP user’s (aka the Prisoner’s)Figure Dilemma. game At you the other of the from pure coordination games lie zero eero-sum options what should adopt,end C or D? spectrum Does it depend on what you which (bearing in mind the comment we made earlier about positive affine lleague will do? Furthermore, from the perspective of the network operaonstant-sum tions) are more properly called constant-sum games. Unlike common-pa of behavior can he expect from the two users? Will any two users behave ames n presented with this scenario? Will the behavior change if the network c before making Shoham and Leyton-Brown, ws the users to communicate with each other a decision? 2006 hanges to the delays would the users’ decisions still be the same? How rs behave if they have the opportunity to face this same decision with the part multiple times? Do answers to the above questions depend on how Game Theory intro CPSC 532A Lecture 3, Slide 15 As an example, two drivers towards each other in a cou equences in Matrix Figure 3.1. imagine YourPareto options are thedriving twoBest rows, andand Recap are shown Example Games Optimality Response Nash Equilibrium traffic rules, and who must independently decide whether to drive on the l ue’s options are the columns. In each cell, the first number represents right. If the players choose the same side (left or right) they have some hig Rock Paper Scissors or, Pareto minus yourOptimal delay), and the second number your colleague’s Outcomes in represents Example Games otherwise they have a low utility. The game matrix is shown in Figure 3.4 0 Rock Paper Scissors C −1 D 1 Left Right C 1 −1, −1 0 −4, 0 −1 Left 1 0 D −1 0, −4 1 −3, −3 0 Right 0 1 Figure 3.6 Rock, Paper, Scissors game. 3.4 Coordination game. Figure 3.1 The TCP user’s (aka the Prisoner’s)Figure Dilemma. B F game At you the other of the from pure coordination games lie zero eero-sum options what should adopt,end C or D? spectrum Does it depend on what you which (bearing in mind the comment we made earlier about positive affine lleague will do? Furthermore, from the perspective of the network operaB are2,more 1 properly 0, 0 onstant-sum tions) called constant-sum games. Unlike common-pa of behavior can he expect from the two users? Will any two users behave ames n presented with this scenario? Will the behavior change if the network c before making Shoham and Leyton-Brown, ws the users to communicate each a decision? 2006 F 0, 0with 1, 2 other hanges to the delays would the users’ decisions still be the same? How rs behave if they have the opportunity to face this same decision with the Figure 3.7 Battle of the Sexes game. part multiple times? Do answers to the above questions depend on how Game Theory intro CPSC 532A Lecture 3, Slide 15 As an example, imagine two drivers driving towards each other in a cou equences in Matrix Figure 3.1. YourPareto options are the twoat rows, andand Recap are shown Example Games Optimality Best Response Nash Equilibrium competition; one player’s gain must come the expense of the other play traffic rules, and who must independently decide whether to drive on the l ue’s options are the columns. In each cell, the first number As in the case of common-payoff games, represents we can use an abbreviated m right. If the players choose the same side (left or right) they have some hig Rock Paper Scissors or, Pareto minus yourOptimal delay), and the second number your colleague’s Outcomes in represents Example Games represent zero-sum games, in which we write only one payoff value in ea otherwise they have a low utility. The game matrix is shown in Figure 3.4 value represents the payoff of player 1, and thus the negative of the payof representation is unambiguous, Rock Note, 0 though, that −1 whereas the 1 full matrix Left Right C D must explicit state whether the abbreviation we this matrix represents a com game or a zero-sum one. Paper 1classical example 0 −1 Left game 1 is the0game of matching pen C A−1, −1 −4, 0 of a zero-sum game, each of the two players has a penny, and independently chooses to d then compare their pennies. If they are th Scissors heads −1 or tails. The 1 two players 0 Right 0 1 Dplayer 0, −4 −3,both, −3 and otherwise 1 pockets player 2 pockets them. The pay shown in Figure 3.5. Figure 3.6 Rock, Paper, Scissors game. 3.4 Coordination game. Figure 3.1 The TCP user’s (aka the Prisoner’s)Figure Dilemma. Heads Tails B F game At you the other of the from pure coordination games lie zero eero-sum options what should adopt,end C or D? spectrum Does it depend on what you which (bearing in mind the comment we made earlier about positive affine lleague will do? Furthermore, from the perspective of the network operaHeads 1 games. −1 Unlike common-pa B are2,more 1 properly 0, 0 onstant-sum tions) called constant-sum of behavior can he expect from the two users? Will any two users behave ames n presented with this scenario? Will the behavior change if the network c before Shoham and Leyton-Brown, Tailsmaking −1a decision? 1 2006 ws the users to communicate each F 0, 0with 1, 2 other hanges to the delays would the users’ decisions still be the same? How rs behave if they have the opportunity to faceFigure this same decision with the 3.5 Matching Pennies game. Figure 3.7 Battle of the Sexes game. part multiple times? Do answers to the above questions depend on how Game Theory intro CPSC 532A Lecture 3, Slide 15 Recap Example Matrix Games Pareto Optimality Best Response and Nash Equilibrium Lecture Overview 1 Recap 2 Example Matrix Games 3 Pareto Optimality 4 Best Response and Nash Equilibrium Game Theory intro CPSC 532A Lecture 3, Slide 16 Recap Example Matrix Games Pareto Optimality Best Response and Nash Equilibrium Best Response If you knew what everyone else was going to do, it would be easy to pick your own action Game Theory intro CPSC 532A Lecture 3, Slide 17 Recap Example Matrix Games Pareto Optimality Best Response and Nash Equilibrium Best Response If you knew what everyone else was going to do, it would be easy to pick your own action Let a−i = ha1 , . . . , ai−1 , ai+1 , . . . , an i. now a = (a−i , ai ) Best response: a∗i ∈ BR(a−i ) iff ∀ai ∈ Ai , ui (a∗i , a−i ) ≥ ui (ai , a−i ) Game Theory intro CPSC 532A Lecture 3, Slide 17 Recap Example Matrix Games Pareto Optimality Best Response and Nash Equilibrium Nash Equilibrium Now let’s return to the setting where no agent knows anything about what the others will do What can we say about which actions will occur? Game Theory intro CPSC 532A Lecture 3, Slide 18 Recap Example Matrix Games Pareto Optimality Best Response and Nash Equilibrium Nash Equilibrium Now let’s return to the setting where no agent knows anything about what the others will do What can we say about which actions will occur? Idea: look for stable action profiles. a = ha1 , . . . , an i is a (“pure strategy”) Nash equilibrium iff ∀i, ai ∈ BR(a−i ). Game Theory intro CPSC 532A Lecture 3, Slide 18 ue’s options are the columns. In each cell, the first number represents Recap Example Matrix Games Pareto Optimality Best Response and Nash Equilibrium or, minus your delay), and the second number represents your colleague’s Nash Equilibria of Example Games C D C −1, −1 −4, 0 D 0, −4 −3, −3 Figure 3.1 The TCP user’s (aka the Prisoner’s) Dilemma. e options what should you adopt, C or D? Does it depend on what you lleague will do? Furthermore, from the perspective of the network operaof behavior can he expect from the two users? Will any two users behave n presented with this scenario? Will the behavior change if the network ws the users to communicate with each other before making a decision? hanges to the delays would the users’ decisions still be the same? How rs behave if they have the opportunity to face this same decision with the part multiple times? Do answers to the above questions depend on how gents are and how they view each other’s rationality? intro to many of these questions. It tells us that any rational CPSC 532A Lecture 3, Slide 19 ry Game givesTheory answers ue’s options are the columns. In each cell, the first number represents Recap Example Matrix Paretothe Optimality Bestor Response Nash Equilibrium right.and If the theGames players number choose same side (left right)and they have some hig or, minus your delay), second represents your colleague’s otherwise they have a low utility. The game matrix is shown in Figure 3.4 Nash Equilibria of Example Games C D C −1, −1 −4, 0 D 0, −4 −3, −3 Left Right Left 1 0 Right 0 1 3.4 Coordination game. Figure 3.1 The TCP user’s (aka the Prisoner’s)Figure Dilemma. game At you the other of the from pure coordination games lie zero eero-sum options what should adopt,end C or D? spectrum Does it depend on what you which (bearing in mind the comment we made earlier about positive affine lleague will do? Furthermore, from the perspective of the network operaonstant-sum tions) are more properly called constant-sum games. Unlike common-pa of behavior can he expect from the two users? Will any two users behave ames n presented with this scenario? Will the behavior change if the network c before making Shoham and Leyton-Brown, ws the users to communicate with each other a decision? 2006 hanges to the delays would the users’ decisions still be the same? How rs behave if they have the opportunity to face this same decision with the part multiple times? Do answers to the above questions depend on how gents are and how they view each other’s rationality? intro to many of these questions. It tells us that any rational CPSC 532A Lecture 3, Slide 19 ry Game givesTheory answers ue’s options are the columns. In each cell, the first number represents Recap Example Matrix Paretothe Optimality Bestor Response Nash Equilibrium right. If the theGames players choose same side (left right)and they have some hig Rock Papernumber Scissors or, minus your delay), and second represents your colleague’s otherwise they have a low utility. The game matrix is shown in Figure 3.4 Nash Equilibria of Example Games 0 Rock Paper Scissors C −1 D 1 Left Right C 1 −1, −1 0 −4, 0 −1 Left 1 0 D −1 0, −4 1 −3, −3 0 Right 0 1 Figure 3.6 Rock, Paper, Scissors game. 3.4 Coordination game. Figure 3.1 The TCP user’s (aka the Prisoner’s)Figure Dilemma. B F game At you the other of the from pure coordination games lie zero eero-sum options what should adopt,end C or D? spectrum Does it depend on what you which (bearing in mind the comment we made earlier about positive affine lleague will do? Furthermore, from the perspective of the network operaB are2,more 1 properly 0, 0 onstant-sum tions) called constant-sum games. Unlike common-pa of behavior can he expect from the two users? Will any two users behave ames n presented with this scenario? Will the behavior change if the network c before making Shoham and Leyton-Brown, ws the users to communicate each a decision? 2006 F 0, 0with 1, 2 other hanges to the delays would the users’ decisions still be the same? How rs behave if they have the opportunity to face this same decision with the Figure 3.7 Battle of the Sexes game. part multiple times? Do answers to the above questions depend on how gents are and how they view each other’s rationality? intro to many of these questions. It tells us that any rational CPSC 532A Lecture 3, Slide 19 ry Game givesTheory answers ue’s options are the columns. In each cell, the first number represents AsMatrix in theGames case of common-payoff games,Best weResponse can use an abbreviated m Recap Example Paretothe Optimality Nash Equilibrium right. If the the second players choose same side (left or right)and they have some hig Rock Papernumber Scissors or, minus your delay), and represents your colleague’s represent zero-sum games, in which we write only one payoff value in ea otherwise they have a low utility. The game matrix is shown in Figure 3.4 value represents the payoff of player 1, and thus the negative of the payof Nash Equilibria of Example Games Note, though, that whereas the representation is unambiguous, Rock 0 −1 1 full matrix Left Right C D must explicit state whether the abbreviation we this matrix represents a com game or a zero-sum one. Paper 1classical example 0 −1 Left game 1 is the0game of matching pen C A−1, −1 −4, 0 of a zero-sum game, each of the two players has a penny, and independently chooses to d then compare their pennies. If they are th Scissors heads −1 or tails. The 1 two players 0 Right 0 1 Dplayer 0, −4 −3,both, −3 and otherwise 1 pockets player 2 pockets them. The pay shown in Figure 3.5. Figure 3.6 Rock, Paper, Scissors game. 3.4 Coordination game. Figure 3.1 The TCP user’s (aka the Prisoner’s)Figure Dilemma. Heads Tails B F game At you the other of the from pure coordination games lie zero eero-sum options what should adopt,end C or D? spectrum Does it depend on what you which (bearing in mind the comment we made earlier about positive affine lleague will do? Furthermore, from the perspective of the network operaHeads 1 games. −1 Unlike common-pa B are2,more 1 properly 0, 0 onstant-sum tions) called constant-sum of behavior can he expect from the two users? Will any two users behave ames n presented with this scenario? Will the behavior change if the network c before Shoham and Leyton-Brown, Tailsmaking −1a decision? 1 2006 ws the users to communicate each F 0, 0with 1, 2 other hanges to the delays would the users’ decisions still be the same? How rs behave if they have the opportunity to faceFigure this same decision with the 3.5 Matching Pennies game. Figure 3.7 Battle of the Sexes game. part multiple times? Do answers to the above questions depend on how gents are and how they view each other’s rationality? The popular of Rock, Scissors, as R intro to many CPSC 532A also Lectureknown 3, Slide 19 ry Game givesTheory answers of thesechildren’s questions.game It tells us thatPaper, any rational ue’s options are the columns. In each cell, the first number represents AsMatrix in theGames case of common-payoff games,Best weResponse can use an abbreviated m Recap Example Paretothe Optimality Nash Equilibrium right. If the the second players choose same side (left or right)and they have some hig Rock Papernumber Scissors or, minus your delay), and represents your colleague’s represent zero-sum games, in which we write only one payoff value in ea otherwise they have a low utility. The game matrix is shown in Figure 3.4 value represents the payoff of player 1, and thus the negative of the payof Nash Equilibria of Example Games Note, though, that whereas the representation is unambiguous, Rock 0 −1 1 full matrix Left Right C D must explicit state whether the abbreviation we this matrix represents a com game or a zero-sum one. Paper 1classical example 0 −1 Left game 1 is the0game of matching pen C A−1, −1 −4, 0 of a zero-sum game, each of the two players has a penny, and independently chooses to d then compare their pennies. If they are th Scissors heads −1 or tails. The 1 two players 0 Right 0 1 Dplayer 0, −4 −3,both, −3 and otherwise 1 pockets player 2 pockets them. The pay shown in Figure 3.5. Figure 3.6 Rock, Paper, Scissors game. 3.4 Coordination game. Figure 3.1 The TCP user’s (aka the Prisoner’s)Figure Dilemma. Heads Tails B F game At you the other of the from pure coordination games lie zero eero-sum options what should adopt,end C or D? spectrum Does it depend on what you which (bearing in mind the comment we made earlier about positive affine lleague will do? Furthermore, from the perspective of the network operaHeads 1 games. −1 Unlike common-pa B are2,more 1 properly 0, 0 onstant-sum tions) called constant-sum of behavior can he expect from the two users? Will any two users behave ames n presented with this scenario? Will the behavior change if the network c before Shoham and Leyton-Brown, Tailsmaking −1a decision? 1 2006 ws the users to communicate each F 0, 0with 1, 2 other hanges to the delays would the users’ decisions still be the same? How rs behave The if they have the opportunity to faceFigure this same decision with the paradox Prisoner’s dilemma: Nash equilibrium is game. the only Matching Pennies Figure 3.7 of Battle of the Sexes game. the3.5 part multiple times? Do answers to the above questions depend on how non-Pareto-optimal outcome! gents are and how they view each other’s rationality? The popular of Rock, Scissors, as R intro to many CPSC 532A also Lectureknown 3, Slide 19 ry Game givesTheory answers of thesechildren’s questions.game It tells us thatPaper, any rational