CIS 140 Lecture 14: L14- Game Theory
20 Dec 2018
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Strictly dominant strategy- a strategy is strictly dominant if player is better off by choosing it no matter what other players do. Pareto optimality- outcome is a game is pareto optimal if no other outcome that makes another player better off while making another player worse off- someones going to complain if you switch to any other squares. If not at pareto optimal, there is some kind of choice that they missed that could have benefited everyone- they could"ve been better off. If repeated over and over again, tends to devolve towards nash equilibrium. Proposer allocates to him and responder. Responders either accepts (and they get the allocation) or rejects (and neither gets the money) Proposer- might value being fair, also might predict that responder"s amount might be high. Players adjust strategies until no player would benefit from changing. Games- strategy; game theory- predicting what players are likely to do.
