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Chapter 14 - Game theory and strategic behavior. This chapter presents the following content: Motivation: Honda and Toyota, nash equilibrium, the prisoner's dilemma, dominant strategy equilibrium, limitations of the nash equilibrium, sequential moves games. | Chapter 14 Game Theory and Strategic Behavior Copyright c 2014 John 1 Chapter Fourteen Overview 1. Motivation Honda and Toyota 3. Nash Equilibrium 5. The Prisoner s Dilemma 6. Dominant Strategy Equilibrium 7. Limitations of the Nash Equilibrium 8. Sequential Moves Games The Value of Limiting One s Opinion Copyright c 2014 John 1 n Chapter Fourteen IS ffl 2 Capacity Expansion Game What is the likely outcome of this game Toyota Honda Build a new plant Do not Build Build a new plant 16 16 OLE 20 15 Do not Build 15 20 18 18 Copyright c 2014 John 1 n Chapter Fourteen IS ffl
