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GAME THEORY, G2 (IPCM3_Andrea, DICE2_Jeff, IBS(M1)_Emerald, IPCM4_Emily),…

- - - - lever of changing game
    - - Adam's version
        
        TAKE IT NOW
        
        get $20
        
        WAIT
        
        get $50
      - Barry's version
        
        WAIT
        
        get $0
        
        TAKE IT NOW
        
        get $20
  - - - 26 Black 26 Red
    - - $2600
        
        $100 per person
  - - - 23 Black 26 Red
    - - $2600
        
        $100 per person
- - - - How
        
        The size of the pie when you are in the game − The size of the pie when you are out of the game
      - don’t try to get more than your added value :forbidden:
    - - Look at only half
        
        How much worse o�ff you’d be without Adam = How much Adam will lose without you.
      - Individual added value the =/= Larger added value of a group of people
        
        How players influence the game
  - - - make others think to take > nothing
        
        Examples
        
        most-favored-customer clauses
        
        take-it-or-leave-it o�ffer
  - - - Texas Shoot-Out
        
        know others' preference to divide the pie
        
        try to go second
      - Artistic Di�erences
        
        Scope (boundaries)
        
        Do not analyze individual games in isolation :forbidden:
        
        Missing the Link
        
        The Epson story
    - - prevent a price war
      - peacock’s tail
- - - - Fundamental Challenge
        
        To pretend that you don't know what your own strategy
        
        Solution
        
        Have someone to assist you by role-play
- - - - not require that every player is rational
        
        Good news for you if other player is irrational
    - - Two people can be rational but different outcomes because of
        
        different perception from information
        
        other things like —pride, fairness, jealousy, spite,
        vengefulness, altruism, and charity
- - - - Why :question:
        
        cut prices to the point
        of destroying profit
- - - - Get more than $20
- - - - Get nothing