Types of games:

1. Constant sum games: the sum of all players' payoffs is the same for
any outcome.
2. Variable sum games: the sum of all player's payoffs differs
depending on the strategies they use.

Coordination games

a) Pure coordination
R L
0,0 -10,-10

-10,-10 0,0

• No dominant strategies
• Multiple Nash
• All non-Nash inefficient
• Nash are Symmetric (same favorite payoff)

A B
4,4 -5,-5

-5,-5 6,6

• No dominant strategies
• Multiple Nash (one eff and 1 ineff.)
• All non-Nash inefficient
• Nash are Symmetric (same favorite payoff)
b) Coordination w/ conflict (Battle of the sexes)
A B
5,3 -5,-5

-5,-5 3,5

• No dominant strategies
• Multiple Nash
• All non-Nash inefficient
• Nash are Asymmetric and both are efficient.

Cooperation games: we can use cooperantion as the action.

a) Prisioner’s dilemma

3,3 1,4

4,1 2,2

“N” for p1, “Z” for p2

• Dom. Strategies
• 1 Nash inefficient
• 3 Non Nash, 1 efficient 2 inefficient
b) Assurance

4,4 1,3

3,1 2,2

“U” and “C” type of moves

• No Dom. Strategies
• Multiple Nash, 1 eff .1 inefficient
• Non Nash are inefficient

c) Chicken

3,3 2,4

4,2 1,1

“U” and “C” type of moves

• No Dom. Strategies
• Multiple Nash both efficient
• Non Nash are 1 inefficient and 1 efficient
d) Deadlock (discoordination)

2,2 1,4

4,1 3,3

“N” for p1, “Z” for p2

• Dom. Strategies
• 1 Nash efficient
• Non Nash are inefficient

A B
4,-4 3,4

-5,7 6,6

• No dominant strategies
• No nash eq.
• Mixed strategies (imperfect info)
• Backwards induction (perf. Info)