One Shot Game:

If a game is played only once and the players move simultaneously or at least no player knows any of the other players’ moves before choosing his. Thus we fully characterize a one-shot game by a list of the available strategies and payoffs K = {S₁ ,.... , S_I ;π₁,.....,π_I}

1) Strategic Form:

It is called the strategic (or normal) form representation of a game. For starters, let’s consider the strategic form of a one-shot game with only two players, A and B, each with two strategies, 1 and 2. (The players could be two firms, an employer and employee and a parent and child and so on.)

The payoffs for each player are collected in the following two matrices.

These are combined into a solo game matrix:

Which completely summarizes the strategic form of the game. The game matrix is useful for depicting the strategic form of games with few players (usually two or three) and a finite number of strategies.

A game is symmetric if π_A ^jk = π_B^kj for all j and k. If π_A^jk+ π_B^kj = c , where c is a constant, for each pair of strategies (j, k), then the game is constant sum; if c = 0, then it is a zero-sum game. Mostly in general games are variable sum.

We are seems for a solution to such games. If each player is rational, what is her optimal strategy? This is given by the best response function. Player i’s best comeback to other player’s strategies is the solution to the following maximization problem:

max π_i(s₁,...., S_i−1, s_i, S_i+1,....., s_i) ........(i)

given the strategies of the (I −1) other players. Therefore the best response function is s_i = R_i (s_i), which can also be expressed as Ri (s₁,....., s_i−1, s_i+1,...., s_I); that is, i’s most excellent strategy is generally a function of the strategies of all other players.

If each player plays her optimal strategy, what happens? That is, what is the equilibrium of such a game?

2) Eliminating Dominated Strategies:

One feature of best response functions is that they never reflect dominated strategies. For player i, strategy si′ dominates strategy si′′ if the payoff to si′ exceeds the payoff to si ′′ for every combination of other players’ strategies si ; that is, if π i (si ′ ,si ) > π i (si ′′ ,si )   ...........(ii)

for all s_i. Rational players never play dominated strategies si′′ , so we can frequently eliminate some strategies as candidates for solutions.

Latest technology based Microeconomics Online Tutoring Assistance

Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Microeconomics help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Microeconomics, project ideas and tutorials. We provide email based Microeconomics help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Microeconomics. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Microeconomics Homework help and assignment help services. They use their experience, as they have solved thousands of the Microeconomics assignments, which may help you to solve your complex issues of Microeconomics. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.