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Chapter 7 Game Theory and the Tools of Strategic Business Analysis
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Chapter 7
Game Theory and theTools of StrategicBusiness Analysis
Copyright © 2001 Addison Wesley Longman
Slide 7- 2
Figure 7.1(a) Game Tree Diagram for a Game of Perfect Information
Copyright © 2001 Addison Wesley Longman
Slide 7- 3
Figure 7.1(b) Game Tree Diagram for a Game of Perfect Information
Copyright © 2001 Addison Wesley Longman
Slide 7- 4
Figure 7.2 Extensive Form of the Game of Matching Pennies
Copyright © 2001 Addison Wesley Longman
Slide 7- 5
Figure 7.3 The “Gift of the Magi” Game
Copyright © 2001 Addison Wesley Longman
Slide 7- 6
Figure 7.4 The Isaac-Abraham Game
Copyright © 2001 Addison Wesley Longman
Slide 7- 7
Figure 7.5 Extensive Form of the Game Played in the Schotter, Weigelt, and Wilson Experiment
Copyright © 2001 Addison Wesley Longman
Slide 7- 8
Figure 7.6(a) Choices in the First Period
Copyright © 2001 Addison Wesley Longman
Slide 7- 9
Figure 7.6(b) Choices in the First Period
Copyright © 2001 Addison Wesley Longman
Slide 7- 10
Figure 7.7 Credible Threats in the Extensive Form of a Game
Copyright © 2001 Addison Wesley Longman
Slide 7- 11
Figure 7.8 Backward Induction
Copyright © 2001 Addison Wesley Longman
Slide 7- 12
Figure 7.9 Uniform Probability Distribution Defined over the Interval [0,200]
Copyright © 2001 Addison Wesley Longman
Slide 7- 13
Figure 7.10 Expected Value of a Wage Greater Than Reservation Wage (w*) over Interval [0, 200] Is Equal
to (w* + 200)/2
