Game Theory provides a useful lens for viewing strategic decisions and interactions. This semester I’m teaching game theory at Susquehanna University and also including the lecture videos free of charge for those who’d like to learn a bit about this fantastic subject!
To this point in the course, our games have only had two players. It’s time to expand it to three players, which, thankfully, is not too tricky of an extension.
The trickiest part when starting out with three player games is to keep track of how the payoffs are listed. In the example below - and in general for all three player games - the row player’s payoff is listed first, the column player is second, and the block player is third. The column player must be listed twice, because of the block player.
To get the full experience, I recommend you take a few minutes to find the Nash equilibrium (or multiple Nash equilibria, if you think there are more than one) of this game before watching the video. But then, check out the video to see the answer and learn more about three player games!