1.2 predator prey example

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    Introduction: Game Theory

    Models of strategic interactions: Outcomes depend on more than one players decision

    The decisions for one player cannot be separated from tho

    of others!

    Models miss (important?) aspects of reality That is why they are models

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    Wide set of applications

    War: Why do some countries arm heavily while others dnot?

    Tragedy of the commons: Why do we need internationaagreements on fishing and how should they be structured

    Markets: What will happen if two companies are allowedmerge?

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    Wide Set of Applications

    E-commerce: How should an on-line auction be structuto maximize revenue? How should sellers be policed?

    Legal: How should random audits of taxes be conducte Sports: Should a soccer player adjust the fraction of tim

    that s/he kicks penalty kicks to a goalies right or left basethe goalie?

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    Game Theoretic Models

    Provide insights when interactions affect incentives

    Applications in many fields

    Methodology/tool box tools will vary with the applications!

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    Questions About Models

    Players: who makes the decisions? Strategies: what are the actions available? Timing: who does what and when? Information: what do players know when choosing? Payoffs: what happens as a function of the actions? and,

    what motivates players? ``Solution : how do we predict what will happen?

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    Course Outline

    Normal Forms

    Extensive Forms

    Repeated Games

    Incomplete Information: Bayesian Games

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    Normal Form

    An example of a normal form game

    The formal model The main ingredients: Players, Strategies, Payoffs

    Normal Form games Dominance Equilibrium

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    Predator Prey Games

    Lets examine an analysis based on a paper by Chen Shi aSheng Bao 2008 ``A Game Theory Based Predation BehaModel (Center for Game Theory in Economics Archive, 2010 Conference)http://www.gtcenter.org/Archive/2010/Conf/Chen956.pdf

    Strategies: Active or Passive Predators - active: dragonfly, passive: spider Prey active: fly, passive: mealybugs

    http://www.gtcenter.org/Archive/2010/Conf/Chen956.pdfhttp://www.gtcenter.org/Archive/2010/Conf/Chen956.pdf
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    ``Payoffs

    Predator: expected calories captured less expected calorexpended

    Active raises calories expended and captured

    Prey: penalty for expected death rate less expected caloriesexpended

    Active raises calories expended and lowers chances of death

    But the expected capture and expended calorie rates are

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    Predator/Prey

    Large Mammal estimates

    Pred\Prey Active PassiveActive 1.7, -.8 3,-1Passive 1.6, -.7 0,0

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    Predator/Prey

    Large Mammal estimates

    Pred\Prey Active PassiveActive 1.7, -.8 3,-1Passive 1.6, -.7 0,0

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    Predator/Prey

    Large Mammal estimates

    Pred\Prey Active PassiveActive 1.7, -.8 3,-1Passive 1.6, -.7 0,0

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    Predator/Prey

    Large Mammal estimates

    Pred\Prey Active PassiveActive 1.7, -.8 3,-1Passive 1.6, -.7 0,0

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    Are most large mammals active?

    predators: lions, tigers, leopards, wolves, coyotes, dogs,cats.

    prey: deer, antelope, zebras, horses, mice, But not all

    Simplified game - could enrich strategy set and payoff structure

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    Predator/Prey

    Small predator prey insects

    Pred\Prey Active PassiveActive 2, -7 6, -8Passive 3, -6 -1,0

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    Predator/Prey

    Small predator prey insects

    Pred\Prey Active PassiveActive 2, -7 6, -8Passive 3, -6 -1,0

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    Predator/Prey

    Small predator prey insects

    Pred\Prey Active PassiveActive 2, -7 6, -8Passive 3, -6 -1,0

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    Predator/Prey

    Small predator prey insects

    Pred\Prey Active PassiveActive 2, -7 6, -8Passive 3, -6 -1,0

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    Predator/Prey

    Pred\Prey Active PassiveActive 2, -7 6, -8Passive 3, -6 -1,0

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    Predator/Prey

    No stable pair of strategies: prey wants to match, predawants to mismatch

    Pred\Prey Active PassiveActive 2, -7 6, -8Passive 3, -6 -1,0

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    Predator/Prey

    No stable pair of strategies: prey wants to match, predawants to mismatch

    Randomization: mixed strategies

    Pred\Prey Active PassiveActive 2, -7 6, -8Passive 3, -6 -1,0