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  • Strategic Interaction as a Game

Interpreting a Payoff Matrix: Rows, Columns, and Cells

A payoff matrix is a standard format used in game theory to represent the outcomes of a strategic interaction. It consists of a rectangular array of numbers where one participant is designated the 'row player' and the other is the 'column player'. By convention, the first number in each cell of the matrix indicates the payoff for the row player, while the second number is the payoff for the column player. Each cell corresponds to a unique combination of strategies, showing the outcome for both players in that specific scenario.

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Ch.4 Strategic interactions and social dilemmas - The Economy 2.0 Microeconomics @ CORE Econ

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Learn After

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