Game Theory Basics 1st Edition
By Bernhard von Stengel. Chapters 1 - 12
1
,TABLE OF CONTENTS NJ NJ NJ
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 NJ NJ
Solutions to Exercises N J N J
© Bernhard von Stengel 2022
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Solution to Exercise 1.1 NJ NJ NJ
(a) Let ≤ be defined by (1.7). To show that ≤ is transitive, consider x, y, z with x ≤ y and y ≤ z. If x
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= y then x ≤ z, and if y = z then also x ≤ z. So the only case left is x < y and y < z, which impl
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ies x < z because < is transitive, and hence x ≤ z.
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Clearly, ≤ is reflexive because x = x and therefore x ≤ x.
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To show that ≤is antisymmetric, consider x and y with x y and
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≤ y x. If we
≤ had x ≠ y the
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n x < y and y < x, and by transitivity x < x which contradicts (1.38). Hence x = y, as required.
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This shows that ≤ is a partial order.
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Finally, we show (1.6), so we have to show that x < y implies x y and x ≠≤ y and vice versa. Le
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t x < y, which implies x y by (1.7). If we had x ≤= y then x < x, contradicting (1.38), so we also h
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ave x ≠ y. Conversely, x y and x ≠ y imply by (1.7)x < y or x = y≤where the second case is excl
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N NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ
uded, hence x < y, as required. NJ NJ NJ NJ NJ NJ
(b) Consider a partial order and≤assume (1.6) as a definition of <. To show that < is transitive, s
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uppose x < y, that is, x y and x ≠ y, and≤y < z, that is, y z and y ≠ z. Because is≤transitive, x
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z. If we had
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≤ x = z then x y≤and y x and hence x = y by ≤
NJ NJ NJ antisymmetry ≤ of , which contra
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dicts x ≠ y, so we have x z and x ≠ z, that is,x < z by (1.6), as required.
≤ ≤
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Also, < is irreflexive, because x < x would by definition mean x x and x ≤
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not true. NJ
Finally, we show (1.7), so we have to show that x ≤ y implies x < y or x = y and vice versa, gi
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ven that < is defined by (1.6). Let x ≤ y. Then if x = y, we are done, otherwise x ≠ y and then
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by definition x < y. Hence, x ≤ y implies x < y or x = y. Conversely, suppose x < y or x = y.
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If x < y then x ≤ y by (1.6), and if x = y then x ≤ y because ≤ is reflexive. This completes t
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he proof. NJ
Solution to Exercise 1.2 NJ NJ NJ
(a) In analysing the games of three Nim heaps where one heap has size one, we first lookat some
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examples, and then use mathematical induction to prove what we conjecture to be the losing posi
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tions. A losing position is one where every move is to a winning position, because then the o
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pponent will win. The point of this exercise is to formulate a precise statement to be proved, a
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nd then to prove it.NJ NJ NJ NJ
First, if there are only two heaps recall that they are losing if and only if the heaps are of eq
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ual size. If they are of unequal size, then the winning move is to reduce thelarger heap so tha
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N NJ NJ NJ
t both heaps have 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
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winning, by moving to 1, 1, 0. Similarly, 1, m, m is winning, by moving to 0, m, m. Next, 1,
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2, 3 is losing (observed earlier in the lecture), and hence 1, 2, n for n 4 is winning. 1, 3, n is
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winning for any n 3 by moving to 1, 3, 2. For 1, 4, 5, reducing any heap produces a winning
≥ ≥
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position, so this is losing. NJ NJ NJ NJ
The general pattern for the losing positions thus seems to be: 1, m, m 1, for even
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+ numbers
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m. This includes also the case m = 0, which we can take as the base case foran induction. We
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now proceed to prove this formally.
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First we show that if the positions of the form 1, m, n with m
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and n = m 1, then these+are the only losing positions because any other position 1, m, n with
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m
NJ n is winning. Namely,
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≤ if m = n then a winning move from1, m, m is to 0, m, m, so we
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can assume m < n. If m is even then n > m 1 (otherwise we would be in the position 1, m, m
+
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1) and so the winning move is to 1, m, m 1. If m is odd then the winning move is to 1,
+ +
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m, m 1, the same as position 1, m 1, m (this would also be a winning move from 1, m, m so ther
– −
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e 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 i
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N NJ NJ
nductive hypothesis that 1, mJ, mJ + 1 for even mJ and mJ < m is a losing position. The move t
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o 0, m, m + 1 produces a winning position with counter-
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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
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winning position with counter- NJ NJ NJ
move to 0, m, m. A move to 1, m, mJ with mJ < m is also to a winning position with the counter-
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move to 1, mJ − 1, mJ if mJ is odd, and to 1, mJ 1, mJ if mJ is even (in which case mJ 1 < m b
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ecause 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 powers of
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2: 1 m ∗ +∗ n is losing 0
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+∗ if and only if, except for 2 , the powers of 2 making upm and n come i
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N J
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N NJ NJ NJ NJ
n pairs. So these must be the same powers of 2, except for 1 = 20, which occurs in only m or n, w
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here we have assumed that n is the larger number, so 1 appearsin the representation of n: We
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have m = 2a 2b 2c NJNJNJNJNJNJ NJNJNJNJNJNJ
+ + + ··· ··· ≥
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for a > b > c > 1,s
+ + + · · · + +
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N
o m is even, and, with the same a, b, c, . . ., n = 2
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a 2b 2 c NJ 1 = m 1. Then NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ N J NJ
N J N J N J N J N J N J
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NJ NJ NJNJNJN J N J
1 N
m
∗ +∗ +∗ ≡∗
J
n
NJNJNJNJNJN J
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0. The following is an example using the
NJNJNJNJN J
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bit representation where NJNJNJNJNJN J
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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 i
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swinning. The three numbers are n, n 1,+n
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N 2.+If n is even then reducing the heap of size n
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2 to 1 creates the position n, n 1, 1 which is losing as shown in (a). If n is odd, then n 1 i
+ +
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s even and n 2 = n 1 1 so by the same argument, a winning move is to reduce the Nim
+ +
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heap of size n to 1 (which only works if n > 1).
( + )+
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N J N J NJ
4