Column Left Right Up -1,-1 -10,0 ROW Down 0, -10 -8, -81.4 Do you recognize this game from your reading or the lecture? You can do a linear transformation on the payoffs of a game without changing its essential structure. In fact, you can even do more general monotonic transformations, though that will affect the probabilities in a mixed strategy equilibrium. Which game is disguised under the action names of Game 1? For the answer, click here

A linear transformation take each payoff combination X, Y and transforms it to a+bX, a+bY. Here, let us insist that b be positive, tho a could be negative. Thus, with a=100 and b=2, the game above becomes GAME 1a

Column Left Right Up 98,98 80,100 ROW Down 100, 80 84,84Game 1a and Game 1 are essentially the same.

Return to Self Test 1.

Send comments to Prof. Rasmusen. Last updated: October 27, 1996