Friday, May 4, 2012

The point of studying game theory

Watch the first game of golden balls, and then write down the reduced form of the game (simultaneous moves) and show that it has three equilibria. Was the outcome one of the equilibria?

 Now watch this same game played by a different pair of people.  
Why was the outcome different?

 HINT: the point of studying game theory is to figure out where self-interest is likely to lead you.  If you don't like where that is, try to figure out how to change the game to your benefit.

 How would you model what Nick did in the second game.  [HINT:  sequential-moves.]


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  2. Greed isn't just in America!!! This is perhaps one of the most strategic games I have witnessed.