Game Theory #4 – Battle of the sexes

in #economics7 years ago

Hi Everyone,

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I will continue my game theory series with the battle of the sexes game. Battle of the sexes is one of three famous games discussed in game theory. The other two games are chicken game and prisoner’s dilemma. I have posts on prisoner’s dilemma and chicken game. These posts can be accessed in links at the end of this post.

What is battle of the sexes?

Battle of the sexes game can be described as a game of cooperation and/or coordination. It is typically explained as a two-player game. The battle of the sexes game is often expressed as a game between a man and a woman. Both the man and the woman are better off by cooperating and/or coordinating their activities. The man has a preference for one activity and the woman has preference for another activity but they would both prefer to do any activity together as they value each other’s company.

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Analysing the battle of the sexes game

The battle of the sexes is best analysed using the normal form game (normal form games are explained in the introduction to game theory post, the link to this post can be found at the end of this post). The normal game is presented in the table below.

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Note: The first number is for the row player (Man) and the second is for the column player (Woman)

From the matrix above we can see that the man prefers going to the cinema than playing crazy golf. We can also see that the woman prefers playing crazy golf than going to the cinema. The matrix also tells us that the man and the woman get more enjoyment from doing an activity together either playing crazy golf or going to the cinema than doing a favourite activity by themselves.

Battle of the sexes does not have a dominant strategy for either the man’s or the woman’s favourite activity (dominant strategy is also explained in the introduction to game theory post). Instead, we have what is called a mixed equilibrium. Therefore, in theory all four outcomes are possible. In reality, only three outcomes should ever occur and hopefully only two outcomes should occur on a regular basis. The two outcomes are playing crazy golf together or going to the cinema together. The third outcome is each of them doing their favourite activity by themselves. The fourth outcome that is possible, in theory, is that both, the man and woman, do the activity they least like by themselves; an example of terrible communication and a bad outcome for both of them.

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How to successfully play battle of the sexes

The two best outcomes, as mentioned earlier, are outcomes that where the man and woman are together. One of those outcomes favours the man (going to the cinema) and one of those outcome favours the woman (playing crazy golf). Which of these outcomes should be reached? If this is a one-off occasion the answer is not clear, either crazy golf or cinema with an equal probability (this equal probability is based on the payoffs shown in the matrix, different numbers could produce different probabilities).

Fortunately, battle of the sexes is often a repeated game (people go out with each other more than once, battle of the sexes situation typical does occur on first dates). If the game is repeated, a logical outcome would be to alternate between favourite activities. The matrix would indicates that a 50-50 split between going to the cinema and playing crazy golf would most likely be agreeable to both parties.

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Real life examples of battle of the sexes

The battle of the sexes game can be applied to many real life events where cooperation achieves a better overall outcome. There are many ways to do things. Different people will have different ideas about how something should be done. If everyone just does what they think is best in the absence of any cooperation, a less than optimal outcome is quite likely.

Let’s take the example of filing papers into folders in the office. Imagine there are two types of hole-punchers, a three-hole puncher and a two-hole puncher. Two people may disagree regarding which hole-puncher to use. If they both use the three-hole puncher or if they both use the two-hole puncher, papers can be filed away together with ease. If they use different hole punchers, the papers cannot be filed together and will required different folders or re-hole punching as papers with three holes cannot be combined with papers with two holes.

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Another more sophisticated example is the use of software. Imagine there are two firms (Firm A and Firm B) in the same industry deciding to update their computer software. These firms work together on a regular basis. Firm A likes software XYZ and Firm B likes software ABC. Unfortunately, the two software packages are not compatible with each other. If Firm A goes with software XYZ and Firm B goes with software ABC. The two firms will not be able to work well together anymore. If both forms adopted the same software, both firms can continue working together efficiently. The normal game for the two firms can be presented in the table below.

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Firm A has been assumed to be the smaller firm of the two firms and would be hurt more from not adopting the same software as Firm B. This gives Firm B a stronger bargaining position in regards to agreeing on what software to adopt. This does not guarantee that Software ABC (Firm’s preferred software) will be adopted. Firm A, stands to lose out by a higher a percentage, if firms cooperate to both adopt ABC instead of XYZ. A mixed equilibrium approach would need to be investigated to determine which software is most likely to be adopted.

I will dedicate a post to explain mixed equilibrium as it can affect both the chicken and battle of the sexes games.

Conclusion

Battle of the sexes game is relevant in many areas. It can be seen as a nicer game than both chicken game and prisoner’ dilemma as cooperation and coordination is encouraged rather than competition. Battle of the sexes games are more likely to reach better outcomes if repeated. The players can make an arrangement to take turns regarding which outcomes to adopt. For example, go to the cinema one week and play crazy golf the next week.

I hope you enjoyed this post. I will be investigating game theory in regards to the Steemit bots in my next post. I will be looking at the real life application of game theory in a number of different areas. I will also explain the rather more complex ideas relating to mixed equilibrium which is relevant to battle of the sexes, chicken game as well many other types of games.

For more information on game theory, you can access my introduction post using the link below:

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You can access my post on prisoner’s dilemma using the link below:

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You can also access my post on chicken game using the link below:

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Battle of the sexes then diverges into Psychology in that who has the pants in the relationship can control the situational outcome in a sense a liar game of who posses the most intelligence money and influence and utilizes it to seek the outcome they desire more, on a major scale between movie and golf maybe not as much but when it comes to doing dishes laundry etc that's where it gets applied ha-ha. I look forward to a mixed equilibrium overview.

On the whole three hole punchers all the way most binders use the 3 not two system so I will argue that external factors can impact the utility in a game theory debate that may not be factored in ceteris paribus all else being equal to determine the optimal pareto outcome to a situation.

Oh... Well written man. Good to know about it. Keep it up and go ahead. You will be a succeessful writter. Thanks for sharing your thought. @spectrumecons

No problem. Just happy you enjoyed reading my post.

Game lungs and thought the finest

Lost you buddy.

I will be looking at the real life application of game theory too mr. @spectrumecons

That is great to hear. I look forward to reading your posts.

i per xbox

Yeah, some people do.

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I've been looking for an economics blog for a while, finally found one. Have you blogged about trade economics? I think it'd be very educational nowadays. Also, let me know if you recommend some other blogs on economics. Thank you, will be following closely!

Hi @fmalafaya. I have a recent post where I look into specialisation and comparative advantage. This is not exactly trade economics but the principles apply. I mostly focus on applied economics and microeconomics. I will probably write more about trade at some point.

There are a few authors that look into economics but most of their posts are focused more around current events rather than theory and application.

That is great to hear .nice post @spectrumecons

Battle of the Sexes actually depicts the physical and spiritual inseparability of both sexes. The chances of success in anything in life depends more on co-operation and alliances than on division and disunity. It is this essence of the game that is captured in the words of @spectrumecons when he says:

Both the man and the woman are better off by cooperating and/or coordinating their activities. The man has a preference for one activity and the woman has preference for another activity but they would both prefer to do any activity together as they value each other’s company.

This underlying theme of the game makes it realistic, universal and therefore has a mass appeal as a reader can easily identify with the characters one way or the other.

Upvoted and resteemed. Keep up the good works @spectrumecons.

Thank you very much @sungbojus. I appreciate your support. The ideas behind game theory and many of the games are useful and have many great real life applications. I happy to share this information with everyone.

very interesting.thanks

Hopefully, if you learnt something, you could share this information with your friends.

I don't get it. There are two males

Brienne of Tarth is a woman.

Suuuuree ;)

Wait a second. Is this the name of a famous board game?

Yes it is but that's not what this post is about.

postings which I think is very interesting, great..

btw, I have been follow you...

Thank you for following me. I appreciate your support.

You're Welcome, Maybe one day we could meet up in the real world hahah

Did you just assume thier gender?

You should watch game of thrones.

very interesting and amazing post guy.
thank you.

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hahaha
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hehe i liked this one quite a lot :D

That's awesome. Thanks @blazing.

Great Mother Of Dragons highly appreciates your post :)

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I am honoured that the mother of dragons would take the time to read my humble post.

Nice post :)

I really like your post, keep the spirit and be the best. If you wish to upvote back my post, I need a little support from you: @spectrumecons

https://steemit.com/aceh/@mahyul/jalan-jalan-ke-waduk-jelekat-lhokseumawe-8edd295ed6fc1

That's awesome that you like my post. I'm sorry I cannot appreciate your posts because of the language barrier.

Вы тоже игрок?))). А я вот не могу долго играть ни в одну игру)

Nice posting.....

Nice post :)

Good job, I am proud of you
Keep on working. Be the best. If you want to upvote my post too, one upvote from you is very valuable, There is nothing wrong if we support each other.
I know if you are a very generous person :) @spectrumecons

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Thank you @aaabangganteng. It is important to put out good content.

I looked at your post, I'm sorry I don't understand your language. I will follow you and upvote the content I like and can understand.

Very interesting

That is great you find my content interesting.

No problem. I'm glad you enjoyed the post.