class project: game theory

The Contenders, the Rabbit and the Closer

BJ EngelhardtJingzhi XuXiaoqing LiXiaoqian Ruan

Game Theory in Reality

Unexpected Golden Medal

During the 2012 London Olympics, runner Mo Farah became a British national hero by winning the gold 10,000 meter and 5,000 meter track races. But actually, he was not expected to be the winner of 5,000 meter track race

How could he win the race?

How it happenedNo

coordination took place in

the 2012 5,000m race

No one to push pace for top contenders,

thus the race started slow

Mo Farah has very fast final split times in

races

Mo Farah moves to the front of the

pack over the final 1000m

The PlayersTwo ‘Top Contenders’: Two competitors that have a

high probability of victory in the game.

The ‘Closer’: A competitor that has a lower probability of victory than the top contenders but a higher probability than the rabbit. Probability for victory increases in non-cooperative scenarios

The ‘Rabbit’: A competitor that is working in cooperation with one of the top competitors to increase that top competitors probability of victory.

Game Explanation

Scenario 1 – A Cooperative Race Decision Scenario10.0% 10.0%

0 0

TRUE Chance

0 0

40.0% 40.0%

0 0

40.0% 40.0%

0 0

10.0% 10.0%

0 0

Decision

0

2.0% 0.0%

0 0

FALSE Chance

0 0

30.0% 0.0%

0 0

50.0% 0.0%

0 0

18.0% 0.0%

0 0

Rabbit's Decision

Sets Pace

Rabbit Wins Race

Non-Cooperative Contender Wins Race

Cooperative Contender Wins Race

Closer Wins Race

Draft

Rabbit Wins Race

Non-Cooperative Contender Wins Race

Cooperative Contender Wins Race

Closer Wins Race

Scenario 2 – A Non-Cooperative Race Decision Scenario 50.0% 50.0%

0 0

TRUE Chance

0 0

30.0% 30.0%

0 0

20.0% 20.0%

0 0

TRUE Decision

0 0

30.0% 0.0%

0 0

FALSE Chance

0 0

30.0% 0.0%

0 0

40.0% 0.0%

0 0

Decision

0

30.0% 0.0%

0 0

FALSE Chance

0 0

50.0% 0.0%

0 0

20.0% 0.0%

0 0

No Rabbit - Top Contender #1's Choice

Draft

Top Contender #2 Sets Pace

Top Contender #1 Wins

Top Contender #2 Wins

Closer Wins

Top Contender #2 Drafts

Top Contender #1 Wins

Top Contender #2 Wins

Closer Wins

Sets Pace

Top Contender #1 Wins

Top Contender #2 Wins

Closer Wins

Game in the real world

Tour de France bicycle race

Application in Business

Cooperative Game

Corporations

Off-shoot Company

Testing new idea

Using this idea to advance the profits of the corporation

Stop using this idea and

change other ideas

Success

ful

Failed

Test again

Non-cooperative game

Thank you