Tools | Bookmark & Share | Make MrWhy My Homepage
MrWhy.com
Go
MrWhy.com » Videos » Lecture 20 - Subgame Perfect Equilibrium: Wars of Attrition, Game Theory
Lecture 20 - Subgame Perfect Equilibrium: Wars of Attrition, Game Theory
Lecture 20 - Subgame Perfect Equilibrium: Wars of Attrition,  Game Theory
Report
Lecture 20 - Subgame Perfect Equilibrium: Wars of Attrition, Game Theory
We first play and then analyze wars of attrition; the games that afflict trench warfare, strikes, and businesses in some competitive settings. We find long and damaging fights can occur in class in these games even when the prizes are small in relation to the accumulated costs. These could be caused by irrationality or by players' having other goals like pride or reputation. But we argue that long, costly fights should be expected in these games even if everyone is rational and has standard goals. We show this first in a two-period version of the game and then in a potentially infinite version. There are equilibria in which the game ends fast without a fight, but there are also equilibria that can involve long fights. The only good news is that, the longer the fight and the higher the cost of fighting, the lower is the probability of such a fight.
Channel: ACADEMIC EARTH
Category: Educational
Video Length: 4536
Date Found: April 18, 2009
Date Produced:
View Count: 139
 
MrWhy.com Special Offers
1
2
3
4
5
 
About Us: About MrWhy.com | Advertise on MrWhy.com | Contact MrWhy.com | Privacy Policy | MrWhy.com Partners
Answers: Questions and Answers | Browse by Category
Comparison Shopping: Comparison Shopping | Browse by Category | Top Searches
Shop eBay: Shop eBay | Browse by Category
Shop Amazon: Shop Amazon | Browse by Category
Videos: Video Search | Browse by Category
Web Search: Web Search | Browse by Searches
Copyright © 2011 MrWhy.com. All rights reserved.