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1081_CDPS_G1 [CO] Chapter 3 – Game Theory ([3] Added Values (common…
1081_CDPS_G1
[CO] Chapter 3 – Game Theory
[1] The power of shortage
Cards game
Adam's case
26 black cards v.s.26 red cards
people's first response
Adam is in the stronger position
He has a monopoly on the black cards
Adam should do well in the bargaining
In fact
To accomplish each deal, Adam needs you just as much as you need Adam.
Students and Adam are in completely symmetric positions
Barry's case
bargaining power gained when there're 3 cards short
23 black cards v.s.26 red cards
three students end up with nothing
getting a sufficiently large slice would more than compensate for the reduction in the size of the pie.
Only 23 deals will be reached
Sacking the cities
more cities want football teams
more
than existing teams
By deliberately restricting the number of teams in the league
Limited supply can be undersupplying the market which can increase the bargaining power of a certain party.
[2] Players
value net
suppliers
competitors
customers
complementors
[3] Added Values
value created by each players joining the game
equals
size of the pie when you are in
minus
payoff ≦ added value
don't be greedy
If you ask too much, others can still play without you
common errors
first error
:check: put ourself in other’s shoes
:green_cross: focus on only half of the side
second error
individual added value ≠ group added value
Examples
Ford carmaker, how Ford exist or not affect the car industry?
Disney animators, how characters live with you and without you?
Barry's Card Game, how joint interest changing the player's strategy?
:warning: 4. why we need unions
Advantage
helps you see the strength of your position
[4] Rules
Rules maker
take it or leave it
These structure the way the game is played
No structure to the negotiations
Common rules in business
meet-the-competition clauses,
take-or-pay contracts
most-favored customer clauses
Physical reaction ≠ Player's reaction
[5] Tactics
Causes of different perceptions
Different people have different perceptions
different people care about different stuff
information asymmetry
altering players perceptions= alter the moves they makes
Example
Texas Shoot-Out
The disasatisfied partner states a price
The other partner either buy or sell at the price
Artistic Differences
[6] Scope
Features
over time
down generations
extending across space
micro affects macro
Example
Chess
No one can visualize it in its entirety
desktop printers
Look the game larger
missing the link
[7] Allocentrism
view games egocentrically :red_cross:
think about how others think :check:
Team member
105106065 王泰然 Frank
106212022 蔡昀雯 Winnie
105212042 金純之 Sunny
105212048 謝其佑 Jason
106212004 郭儀中 Eva
105212017 賴珮綺 Christy
size of the pie without you