Game Theory Basics 1st Edition
By Bernhard von Stengel. Chapters 1 - 12
1
,TABLE OF CONTENTS QWE QWE QWE
1 - Nim and Combinatorial Games
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2 - Congestion Games
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3 - Games in Strategic Form
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4 - Game Trees with Perfect Information
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5 - Expected Utility
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6 - Mixed Equilibrium
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7 - Brouwer’s Fixed-Point Theorem
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8 - Zero-Sum Games
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9 - Geometry of Equilibria in Bimatrix Games
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10 - Game Trees with Imperfect Information
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11 - Bargaining
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12 - Correlated Equilibrium
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2
,Game Theory Basics QWE QWE
Solutions to Exercises Q W E Q W E
© Q W E Bernhard von Stengel 2022 QW E QW E QW E
Solution to Exercise 1.1 QWE QWE QWE
(a) Let ≤ be defined by (1.7). To show that ≤ is transitive, consider x, y, z with x ≤ y and y ≤ z. If x = y then
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x ≤ z, and if y = z then also x ≤ z. So the only case left is x < y and y < z, which implies x < z because < is
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transitive, and hence x ≤ z.
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Clearly, ≤isreflexivebecause x = x andtherefore x ≤ x. QWE E
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To show that is≤antisymmetric, consider x and y with x y and y x. If≤
QWE we had x ≠ y then
≤ x < y and y < QWE QWEQW EQW EQW EQW E QW E QWE QWE QWE QWE QW E QWE QWEQWEQWEQWEQWE QWE QWE QWEQWEQWEQWEQWE QWE QW E QWE QWE QWE QWE QW E QWE QWE QWE QWE QWE QW E QWE
x, and by transitivity x < x which contradicts (1.38). Hence x = y, as required. This shows that ≤is a
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E QWE QWE
partial order. QWE
Finally, we show (1.6), so we have to show that x < y implies x y and x ≠ y and vice
≤ versa. Let x < y, whi QWE QWE QWE QWE QWE QW E QWE QWE QWE QWE QWE QWE QW E QWE QWEQWE QW E QWE QWE QWE QWE QW E QW E QWE QW E QWE QWE QW E QWE
ch implies x y by (1.7). If we had x = y then x < x, contradicting
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≤ (1.38),sowealsohave x ≠ y. Conversely, QWE QWE QW E QW E QW E QWE QW E QWE QW E QWE QWE QWE QWE QW E QW E E
QW E
QW E
QW E
QW E
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x yand x ≠ yimplyby(1.7)x < y or x = y where the second case is excluded,
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≤ hence x < y, as required.
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QW E
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(b) Consider a partial order and assume ≤ (1.6) as a definition of <. To show that < is transitive, suppose QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QW E QWE QWE
x < y, that is, x y and x ≠ y, and y < z, that is, y≤z and y ≠ z. Because is transitive, x z. If we
QWE QW E QWE
≤ had x = z then QWE QW E QW E QWE QWE QWE QWE QWE QW E QWE QWE QW E QWE QWE QW E QWE QWE QW E QWE QW E QWEQWE QWE QW E QW E QWE QWEQWEQWE QWE QWE QWE QW E QWE QWE QWE QWE QWE
x y and y ≤x and hence x = y by≤antisymmetry of , which contradicts
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≤ x ≠ y,≤ so we have x z and x ≠ QWE QW EQW EQW EQW EQW E QWE QWE QWE QWE QW E QWE QW E QW E QWEQWE QWE Q W E QW E QW E Q W E Q W E Q W E QW E QW E QW E Q W E QW EQWEQWE Q W E QW E Q W E Q W E Q
z, that is,x < z by (1.6), as required.
≤ ≤
W E QW E QW E E
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Also, < is irreflexive, because x < x would by definition mean x x and x ≠ x, but≤the latter is not true.
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Finally, we show (1.7), so we have to show that x ≤ y implies x < y or x = y and vice versa, given that QWE QWE QWE QWE QWE QW E QWE QWE QWE QWE Q W E QW E QWE QWE QWE QWE QW E QW E QW E QWE QW E QW E QWE QWE QWE QWE
< is defined by (1.6). Let x ≤ y. Then if x = y, we are done, otherwise x ≠ y and then by definition x < y.
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Hence, x ≤ y implies x < y or x = y. Conversely, suppose x < y or x = y. If x < y then x ≤ y by ( QWE QWE QWE QWE QWE QWE QWE QW E QW E QWE QWE QWE QWE QWE Q W E Q W E QW E QW E QW E QWE Q W E QWE Q W E Q W E QWE QWE Q W E QWE QWE QWE
1.6), and if x = y then x ≤ y because ≤is reflexive. This completes the proof.
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Solution to Exercise 1.2 QWE QWE QWE
(a) In analysing the games of three Nim heaps where one heap has size one, we first lookat some exa
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mples, and then use mathematical induction to prove what we conjecture to be the losing positions. A l
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osing position is one where every move is to a winning position, because then the opponent will win
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. The point of this exercise is to formulate a precise statement to be proved, and then to prove it.
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First, if there are only two heaps recall that they are losing if and only if the heaps are of equal size.
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If they are of unequal size, then the winning move is to reduce thelarger heap so that both heaps hav
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e equal size.
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3
, Consider three heaps of sizes 1, m, n, where 1 m n. We≤observe ≤ the following: 1, 1, m is winning, QWE QWE QWE QWE QWE QWE QWE QWE QWE QW EQWE QWE QWE QWE QWEQWEQWEQWEQWE QW E QWE QWE QWE QW E QWE QWE QWE QWE QWE
by moving to 1, 1, 0. Similarly, 1, m, m is winning, by moving to 0, m, m. Next, 1, 2, 3 is losing (observ
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ed earlier in the lecture), and hence 1, 2, n for n 4 is winning. 1, 3, n is winning for any n 3 by movin
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g to 1, 3, 2. For 1, 4, 5, reducing any heap produces a winning position, so this is losing.
≥ ≥
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The general pattern for the losing positions thus seems to be: 1, m, m 1, for even numbers
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+ m. Thisi QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QW E QW E QWE QWE QW E QWE Q W E QWE
ncludesalsothecase m =0,whichwecantakeasthebasecaseforan induction. We now proceed to pr QWE QWE QWE QWE QW E QWE QWE QWE QWE QWE QWE QW
E QWE QWE QWE E
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ove this formally. QWE QWE
First we show that if the positions of the form 1, m, n with m n are losing when
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≤ m is even and n = m QWE QWE QWE QWE QWE QWE QWE QWE QW E QWE QWE QWE QWE QWEQWEQWEQWEQWEQWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE
1, then these are the only losing
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+ positions because any other position 1, m, n with m n is winn
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ing. Namely, if m = n then ≤ a winning move from1, m, m is to 0, m, m, so we can assume m < n. If m i
Q W E QW E QW E Q W E QW E Q W E QW E QW E QW E QW E QWE QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E Q W E QW E QW E
s even then n > m 1 (otherwise we would be in the position 1, m, m 1) and so the winning m
+
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ove is to 1, m, m 1. If m is odd then the winning move is to 1, m, m 1, the same as position 1, m 1, m (
+ +
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this would also be a winning move from 1,m,m so there the winning move is not unique).
– −
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Second, we show that any move from 1, m, m + 1 with even m is to a winning position,using as inductiv QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QWE QWE QWE
e hypothesis that 1, mJ, mJ + 1 for even mJ and mJ < m is a losing position. The move to 0, m, m + 1 pro
QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QW E QWE QW E QW E QWE QWE QWE QWE QW E QWE QWE QW E QW E
duces a winning position with counter- QWE QWE QWE QWE QWE
move to 0, m, m. A move to 1, mJ, m + 1 for mJ < m is to a winning position with the counter-
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move to 1, mJ, mJ + 1 if mJ is even and to 1, mJ, mJ − 1 if mJ is odd. A move to 1, m, m is to a winning posit
QWE QW E QWE QW E QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QWE QW E QW E QW E QW E QW E QW E QW E QW E
ion with counter- QW E QW E
move to 0, m, m. A move to 1, m, mJ with mJ < m is also to a winning position with the counter-
QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E Q W E QW E Q W E QW E QW E QW E QW E QW E QW E QW E QW E QW E
move to 1, mJ − 1, mJ if mJ is odd, and to 1, mJ 1, mJ if mJ is even (in which case mJ
QW E 1 < m because QW E QW E QW E QW E QW E QW E Q W E QW E QW E QW E QW E QW E QW E Q W E QW E QW E QW E QW E QW E QW E QW E QW E QW E Q W E QW E QW E QW E QW E
m is even). This concludes the induction proof.
+ +
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This result is in agreement with the theorem on Nim heap sizes represented as sums of powersof2:
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1 m Q n∗islosing
+∗ +∗
W ifandonlyif, exceptfor20, thepowersof2making upm and n come in pairs. So the
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se must be the same powers of 2, except for 1 = 20, which occurs in only m or n, where we have assumed t
Q W E
QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E QW E
hat n is the larger number, so 1 appearsin the representation of n: We have m = 2a 2b 2c
QW E QW E QW E QW E QW E QW E QW E QW E QWE Q WE Q WE QWE Q W E Q W E Q WE Q W E Q W E Q W E
QWEQWEQWEQWEQWEQW E QWEQWEQWEQWEQWEQW E
for a > b > c > 1,so m
+ +c + ··· ··· ≥
Q W E Q W E Q W E Q W E Q W E Q W E QWEQWEQWEQWEQWEQW EQW EQ W E E
QW Q W E Q W
is even, and, with the same a,b, c,..., n = 2 a 2 b 2 1 = m 1. Then Q W E Q W E Q W E Q W E Q W E Q W E
Q W E QW E Q W E QW E QW E Q W E
+ + + ··· + +
E Q W E Q W E Q W E Q W E Q W E Q W E QWE QWE QWE QWE QWE Q W E Q W E Q W E Q W E Q W E QWEQWEQWE Q W E Q W E
∗1 +m∗ +n∗ 0. ≡ ∗ The following is an example using the bit representation where
Q W E Q W E Q W E Q W E
QWEQWEQW EQW EQW EQ W E QWEQWEQWEQWEQ W E QWEQWEQWEQW EQW EQ W E Q W E QWE Q WE QWE QWE QWE Q WE QWE QWE QW E
Q W E Q W E Q W E QWE
m = 12 (which determines the bit pattern 1100, which of course depends on m):
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1 = 0001
12 = 1100
13 = 1101
Nim-sum 0 = 0000
(b) We use (a). Clearly, 1, 2, 3 is losing as shown in (1.2), and because the Nim-
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sum of the binary representations 01, 10, 11 is 00. Examples show that any other position iswinni
QWE QW E QWE QWE QWE QW E QW E QWE QW E QWE QWE QWE QWE QWE QWE QWE E
QW
ng. The three numbers are n, n 1, n
QW E 2.+If n is even
+ then reducing the heap of size n 2 to 1 creates QW E QW E QW E QW E QW E Q W E QW E Q W E Q W E QW E QW E QW E QW E QW E QW E QW E QW E QW E QWE QW E QW E QW E QWE QWE QWE
the position n, n 1, 1 which is losing as shown in (a). If n is odd, then n 1 is even and n 2 = n
+ +
QWE QWE QWE Q W E QWE QWE QWE QWE QWE QWE QW E QWE QWE QWE QWE QW E QWE QWE Q W E QWE QWE QWE QWE QWEQWE QWE QWE Q W E QWEQWE QW E
1 1 so by the same argument, a winning move is to reduce the Nim heap of size n to 1 (which only w
+ +
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orks if n > 1).
( + )+
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Q W E Q W E QWE
4