Game Theory is an interesting subject. It has implications on all of our lives, and it’s not something that’s blatantly obvious all the time. It’s the science of strategy, and it’s pretty cool.… Read the rest
How to find Nash Equilibrium in a 2X2 payoff matrix
This video goes over the strategies and rules of thumb to help figure out where the Nash equilibrium will occur in a 2×2 payoff matrix. Generally you need to figure out what the dominant strategy is for each player and … Read the rest
How Nash Equilibrium Changed Economics
John Nash, the US mathematician who has died at 86, is hailed with putting game theory at the heart of economics. Ferdinando Giugliano explains why his work is so important and how the Nash equilibrium theory works.… Read the rest
Game Theory 12: Evolutionarily Stable Strategies
COOPERATIVE STRUCTURES
As we saw in the previous chapter on evolutionary games, when everyone was playing a random strategy it was best to play a Tit for Tat strategy. When everyone was playing a Tit for Tat strategy it was … Read the rest
Game Theory 4: Non-Cooperative Games
NON-COOPERATIVE GAMES
In studying the dynamics of cooperation and competition between actors, understanding the structure of the game that is being played is central to understanding the system of interest.
In game theory, a primary distinction is made between those … Read the rest