ECON 309 Lecture Notes - Lecture 2: Rationality, Externality

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26 Jan 2017
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Topics: prisoner"s dilemma discussion, main concepts, games externalities and optimality, classical game theory and rationality. They not only are about themselves, but now they are about their partner as well. They feel the outcome that occurs to their partner as well as their own. The new choice would be to deny in because they will both have a better outcome. It is important to know all of the payoffs and players in game theory because it can have a significant affect on choice of movements for the players involved. Other examples of prisoner"s dilemma in real life: the choice to work really hard in a course that offers a curve or to not work hard. It is measured against what other students in the class do as well to prepare. re hat class do as well to prepare. Game theory: a way in which we explain our analysis of strategic information. Playoffs: what they care about that guides their choices.

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