CMU 15-251
Game theory
Teachers: Anil Ada Ariel Procaccia (this time)
CMU 15-251 Game theory Teachers: Anil Ada Ariel Procaccia (this - - PowerPoint PPT Presentation
CMU 15-251 Game theory Teachers: Anil Ada Ariel Procaccia (this time) Normal-Form Game = {1, , } o o : o j ( 1 , ,
Teachers: Anil Ada Ariel Procaccia (this time)
π β π
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Selling ice cream at the beach. One day your cousin Ted shows up. His ice cream is identical! You split the beach in half; you set up at 1/4. 50% of the customers buy from you. 50% buy from Teddy. One day Teddy sets up at the 1/2 point! Now you serve only 37.5%!
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π‘π+π‘π 2
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β² β π, π£π π β₯ π£π(π‘π β², πβπ)
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Day 3 of the ice cream warsβ¦ Teddy sets up south of you! You go south of Teddy. Eventuallyβ¦
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π‘2 π‘1
π’1 π’2
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π’ π‘ π 1
π‘1 π‘2 π‘π π’ β¦ 0 0 1 1 1 2
π‘1 π‘2 π‘π π’ β¦ 0 0 2
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β², πβπ β costπ π = Ξ¦ π‘π β², πβπ β Ξ¦(π)
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π π=1 ππ(π) ππ
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ππ π +1 ππ ππ π
Ξcostπ = ΞΞ¦ β
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