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Summary ECON0013 Microeconomics Term 1 UCL 21/22 $13.05   Add to cart

Summary

Summary ECON0013 Microeconomics Term 1 UCL 21/22

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A summary of Term 1 Microeconomics UCL 21/22 taught by Martin Cripps - economics of the household. Topics include: strategic form games, extensive form games, extensive game equilibria, monopolies, oligopolies, profit maximisation & adverse selection, moral hazard, contracts and economic mechanisms...

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  • May 13, 2022
  • 46
  • 2021/2022
  • Summary
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Strategic form games

3min
LISTOFPlayers q
PURESTRATEGIES

Payoffs


g

E i c i c E 01

s 10 El 10101



PURESTRATEGIES playersactions

MEDSTRATEGIES playersactions w prob
allowsforrandomisation

PAYOFFSFROM GEE
MIXEDSTRATEGIES


L
Col choosingPaper I p t o g ti il i pg

Dominance strict payoff payoff

week payoff payoff

appliestopure mixedstrats


NashEa bestresponsegivenother'slunchangedistrat a onedeviatingalone
won'thavea
betteroutcome
3TYPES
purestrat strict
payoffmatrix
Mixedstrat
indie
subgameperfect backwardsinduction

, Finding Nash Equilibria




strictDominanceonce
ifweak someNE maybelost
Eliminated.in
gi
mixedstrategies




lil p ti p needsto
beequal
INDIFFERENT
tobewilling
1 lil p Itp

NE Row 42L 42121 coal I


Underlining




o


reveals2L ME


changingintostrategicform underliningrevealsALLN E




Intersectionofbestresponses


mincost max util via F o c

, Extensive form games

oneuniquepathtoeachnode


PERFECTINFORMATION


PILE I
F R strategyname


2 2
F R F R

PayoffPROFILE 12.01 I till 11 11 O
pi iz Ipl H T i pl
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PURESTRATEGIES G MIXEDSTRATEGIES G STRATEGIES
BEHAVIOUR


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canchoosebestpayoffforthem




IMPERFECTINFORMATION




F R INFOSET

2
I2
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pi iz
simultaneousmoves


set
musthavethesamestrategyafteraninfo

, Purestrats P2 Lip Lia m.pl mid RIP 12,01


P2 Ac E A.C.FI A D EI AD.FI
B C El B C FI BID E B D Fl

mixedstats perplayerbasis




henceshouldn'thaveincentivetodeviate

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