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Study with Quizlet and memorize flashcards containing terms like A Game, A Strategy, Assumption of Rationality and more.
Game Theory, Cox, Test One Learn with flashcards, games, and more — for free.
Study with Quizlet and memorize flashcards containing terms like Strategies, Payoffs, Equilibrium and more.
Devising policies to promote people’s wellbeing requires an understanding of the difference between situations in which self-interest can promote general wellbeing, and cases in which it leads to undesirable results. To analyse this, we will introduce game theory, a way of modelling how people interact.
2 sty 2022 · Game theory: Study of how people behave in strategic situations. Mixed strategy: Where a player chooses a random strategy. Nash equilibrium: Where all agents in game are pursuing their best possible strategy given the strategies of all other participants. Overt collusion: Formal and open agreements between firms to minimise competition between them
25 sty 1997 · Game theory is the study of the ways in which interacting choices of economic agents produce outcomes with respect to the preferences (or utilities) of those agents, where the outcomes in question might have been intended by none of the agents.
GAME THEORY DEFINITIONS. 1.1 Dominant strategy . 1.2 Nash Equilibrium. 1.3 Maximin strategy. 1.1 Dominant Strategy. A player will have a dominant strategy if its choice is optimal regardless of what the opponent does. A strategy is dominant if it pays at least as much as any other strategy regardless the action of the other player.
