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Summary: 10/1/2010
1
19 Subgame perfect equilibrium:
matchmaking and strategic g g
investments
2 players.
Not a hard game. Can do with
backwards induction.
Player 1 may choose D
if he doesn't
trust the other person.
10/1/2010
2
Lesson 20: Wars of Attrition
Bribe contests (try to get your way by bribing, but as long as both parties do, no winner)
also called all pay auctions.
Bidding for a $1 bill
Possible that a fight could go on quite a while. By the time they fought the
second time, they had exhausted the reward. Over time, losses far exceed
possible prize at stake.
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