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Transcript of Game Theory
is dominated by
strategy B if
the payoffs of A are always worse than the payoffs of B
(no matter what the other player's strategy is)
• For topical readings from the media, on-line games, and goodies:
• For a history of game theory (by Paul Walker):
• Game Theory Society:
• “Game of Strategy,” A. Dixit and S. Skeath
• “Games, Strategies, and Managers: How Managers Can Use Game Theory to Make Better Business Decisions,” John McMillan
solve the PD?
Three Classical Games
: A No Regret Scenario
What is GT
References on GT
Strategic decision making
Two or more players
Math models for Economics, Political Science, Biology
Behavioral Game Theory
At least 5 Nobel Prizes in the last 15 years
How human beings behave, interact, compete, and cooperate
A suggestion about how humans will behave (e.g., the concept of Nash Equilibrium)
Behavioral Game Theory:
An attempt to explain why people make apparently "irrational" decisions
Making decisions and forming believes based on the analysis of what other people might do