a game theory analysis of the final five laps of the 2008 formula 1 brazilian grand prix jordan...
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![Page 1: A Game Theory Analysis of the Final Five Laps of the 2008 Formula 1 Brazilian Grand Prix Jordan Diekema](https://reader035.vdocuments.us/reader035/viewer/2022081603/56649e2f5503460f94b1fbdb/html5/thumbnails/1.jpg)
A Game Theory Analysis of the Final Five Laps of the 2008 Formula 1 Brazilian Grand Prix
Jordan Diekema
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Analyze the pit strategies of three key drivers for the final five laps of Brazilian GPFelipe Massa (Ferrari)Lewis Hamilton (McLaren-Mercedes)Timo Glock (Toyota)
Goal:Show that the reason Glock chose not to pit
was out of self-interestShow that what would normally be viewed as
an irrational strategy was, in fact, rational
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Rain started with 5 laps to go
Massa running in 1st, Hamilton running in 4th
If Massa won, Hamilton needed 5th or better
Massa and Hamilton pitChange to intermediate
wet tiresSensible strategy
Glock does not pitStays on dry tires
despite rainPasses Hamilton while
in pitsHamilton drops from
5th to 6th, out of contention
Massa wonHamilton passes Glock
on final corner of final lap to take 5th
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Two basic strategies:Make a pit stop (P)Don’t make a pit stop
(D)Reasons to pit:
Wet trackChange to wet tires for
better tractionMinimize risks
Reasons not to pit:Very fewDon’t waste time by
pitting
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Championship pointsPoints based on
finishing place10, 8, 6, 5, 4, 3, 2, 1
Monetary rewardsComparative payoffs(+), (-)
ReputationComparative payoffs(+), (~), (-)
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Risk discount factor multiplied by D payoffs0 < r < 1
Helps to differentiate payoffs for P and D
Example:Massa gets 10 pts if PMassa gets 10r pts if DD is far riskier
strategy, and thus the payoff is discounted by r
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P=PitD=Don’t pitRow 1—
Championship points payoffs
Row 2—monetary reward comparative payoffs
Row 3—reputation comparative payoffs
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Used:Iterated Elimination of
Dominated StrategiesSub-Perfect Nash
EquilibriaResults:
Massa, Hamilton always choose P
Glock always chooses D
Holds for all three variables
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Choosing D was rational for GlockBecause of his
perception of riskD was the strategy
that maximized his payoffs