1. Decision Trees and Game Trees


Central Idea: Use game trees, not decision trees.

Antithesis: Figure out all the probabilities, set up a decision tree, and you'll make the right decision.

Topics For Class Discussion

Important Terms: Players-Actions-Payoffs, Decision Trees vs. Game Trees, First-Mover Advantage, Second-Mover Advantage, Mixed Strategies, Bid-Ask Spread, Tournament.

Additional Material

For Next Time

Return to the Thinking Strategically Home Page at http://pacioli.bus.indiana.edu/erasmuse/g570/g570.htm. Send comments to Prof. Rasmusen. Last updated: March 28, 2002.