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Schelling Point
In game theory, a focal point (or Schelling point) is a solution that people tend to choose by default in the absence of communication. The concept was introduced by the American economist Thomas Schelling in his book ''The Strategy of Conflict'' (1960). Schelling states that "(p)eople ''can'' often concert their intentions or expectations with others if each knows that the other is trying to do the same" in a cooperative situation (at page 57), so their action would converge on a focal point which has some kind of prominence compared with the environment. However, the conspicuousness of the focal point depends on time, place and people themselves. It may not be a definite solution. Existence The existence of the focal point is first demonstrated by Schelling with a series of questions. The most famous one is the New York City question: if you are to meet a stranger in New York City, but you cannot communicate with the person, then when and where will you choose to meet? This is a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Game Theory
Game theory is the study of mathematical models of strategic interactions among rational agents. Myerson, Roger B. (1991). ''Game Theory: Analysis of Conflict,'' Harvard University Press, p.&nbs1 Chapter-preview links, ppvii–xi It has applications in all fields of social science, as well as in logic, systems science and computer science. Originally, it addressed two-person zero-sum games, in which each participant's gains or losses are exactly balanced by those of other participants. In the 21st century, game theory applies to a wide range of behavioral relations; it is now an umbrella term for the science of logical decision making in humans, animals, as well as computers. Modern game theory began with the idea of mixed-strategy equilibria in two-person zero-sum game and its proof by John von Neumann. Von Neumann's original proof used the Brouwer fixed-point theorem on continuous mappings into compact convex sets, which became a standard method in game theory and mathema ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Collision Game
In physics, a collision is any event in which two or more bodies exert forces on each other in a relatively short time. Although the most common use of the word ''collision'' refers to incidents in which two or more objects collide with great force, the scientific use of the term implies nothing about the magnitude of the force. Some examples of physical interactions that scientists would consider collisions are the following: * When an insect lands on a plant's leaf, its legs are said to collide with the leaf. * When a cat strides across a lawn, each contact that its paws make with the ground is considered a collision, as well as each brush of its fur against a blade of grass. * When a boxer throws a punch, their fist is said to collide with the opponents body. * When an astronomical object merges with a black hole, they are considered to collide. Some colloquial uses of the word collision are the following: * A traffic collision involves at least one automobile. * A mid-air c ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Simultaneous Game
In game theory, a simultaneous game or static game is a game where each player chooses their action without knowledge of the actions chosen by other players. Simultaneous games contrast with sequential games, which are played by the players taking turns (moves alternate between players). In other words, both players normally act at the same time in a simultaneous game. Even if the players do not act at the same time, both players are uninformed of each other's move while making their decisions. Normal form representations are usually used for simultaneous games.Mailath, G., Samuelson, L. and Swinkels, J., 1993. Extensive Form Reasoning in Normal Form Games. Econometrica, nline61(2), pp.273-278. Available at: ccessed 30 October 2020 Given a continuous game, players will have different information sets if the game is simultaneous than if it is sequential because they have less information to act on at each step in the game. For example, in a two player continuous game that is se ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Coordination Game
A coordination game is a type of simultaneous game found in game theory. It describes the situation where a player will earn a higher payoff when they select the same course of action as another player. The game is not one of pure conflict, which results in multiple pure strategy Nash equilibria in which players choose matching strategies. Figure 1 shows a 2-player example. Both (Up, Left) and (Down, Right) are Nash equilibria. If the players expect (Up, Left) to be played, then player 1 thinks their payoff would fall from 2 to 1 if they deviated to Down, and player 2 thinks their payoff would fall from 4 to 3 if they chose Right. If the players expect (Down, Right), player 1 thinks their payoff would fall from 2 to 1 if they deviated to Up, and player 2 thinks their payoff would fall from 4 to 3 if they chose Left. A player's optimal move depends on what they expect the other player to do, and they both do better if they coordinate than if they played an off-equilibrium combinat ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Coordination Failure (economics)
In economics, coordination failure is a concept that can explain recessions through the failure of firms and other price setters to coordinate. In an economic system with multiple equilibria, coordination failure occurs when a group of firms could achieve a more desirable equilibrium but fail to because they do not coordinate their decision making. Coordination failure can result in a self-fulfilling prophecy.Romer, 305. For example, if one firm decides a recession is imminent and fires its workers, other firms might lose demand from the lay-offs and respond by firing their own workers leading to a recession at a new equilibrium. Coordination failure can also be associated with sunspot equilibria (where equilibria are the result of variables that do not have any real impact on fundamentals) and animal spirits. Coordination failure can lead to an underemployment equilibrium. Coordination failure also implies that fiscal policy can mitigate the effects of recessions, or eve ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Game Theory
Game theory is the study of mathematical models of strategic interactions among rational agents. Myerson, Roger B. (1991). ''Game Theory: Analysis of Conflict,'' Harvard University Press, p.&nbs1 Chapter-preview links, ppvii–xi It has applications in all fields of social science, as well as in logic, systems science and computer science. Originally, it addressed two-person zero-sum games, in which each participant's gains or losses are exactly balanced by those of other participants. In the 21st century, game theory applies to a wide range of behavioral relations; it is now an umbrella term for the science of logical decision making in humans, animals, as well as computers. Modern game theory began with the idea of mixed-strategy equilibria in two-person zero-sum game and its proof by John von Neumann. Von Neumann's original proof used the Brouwer fixed-point theorem on continuous mappings into compact convex sets, which became a standard method in game theory and mathema ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Game Of Chicken
The game of chicken, also known as the hawk–dove game or snowdrift game, is a model of conflict for two players in game theory. The principle of the game is that while the ideal outcome is for one player to yield (to avoid the worst outcome if neither yields), the individuals try to avoid it out of pride for not wanting to look like a "chicken". Each player taunts the other to increase the risk of shame in yielding. However, when one player yields, the conflict is avoided, and the game is for the most part over. The name "chicken" has its origins in a game in which two drivers drive toward each other on a collision course: one must swerve, or both may die in the crash, but if one driver swerves and the other does not, the one who swerved will be called a "chicken", meaning a coward; this terminology is most prevalent in political science and economics. The name "hawk–dove" refers to a situation in which there is a competition for a shared resource and the contestants can choo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Left- And Right-hand Traffic
Left-hand traffic (LHT) and right-hand traffic (RHT) are the practices, in bidirectional traffic, of keeping to the left side or to the right side of the road, respectively. They are fundamental to traffic flow, and are sometimes referred to as the '' rule of the road''. The terms right- and left-hand ''drive'' refer to the position of the driver and the steering wheel in the vehicle and are, in automobiles, the reverse of the terms right- and left-hand ''traffic''. The rule also extends to where on the road a vehicle is to be driven, if there is room for more than one vehicle in the one direction, as well as the side on which the vehicle in the rear overtakes the one in the front. For example, a driver in an LHT country would typically overtake on the right of the vehicle being overtaken. RHT is used in 165 countries and territories, with the remaining 75 countries and territories using LHT. Countries that use left-hand traffic account for about a sixth of the world's land a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Nash Equilibrium
In game theory, the Nash equilibrium, named after the mathematician John Nash, is the most common way to define the solution of a non-cooperative game involving two or more players. In a Nash equilibrium, each player is assumed to know the equilibrium strategies of the other players, and no one has anything to gain by changing only one's own strategy. The principle of Nash equilibrium dates back to the time of Cournot, who in 1838 applied it to competing firms choosing outputs. If each player has chosen a strategy an action plan based on what has happened so far in the game and no one can increase one's own expected payoff by changing one's strategy while the other players keep their's unchanged, then the current set of strategy choices constitutes a Nash equilibrium. If two players Alice and Bob choose strategies A and B, (A, B) is a Nash equilibrium if Alice has no other strategy available that does better than A at maximizing her payoff in response to Bob choosing B, and Bob ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Thomas Schelling
Thomas Crombie Schelling (April 14, 1921 – December 13, 2016) was an American economist and professor of foreign policy, national security, nuclear strategy, and arms control at the School of Public Policy at University of Maryland, College Park. He was also co-faculty at the New England Complex Systems Institute. He was awarded the 2005 Nobel Memorial Prize in Economic Sciences (shared with Robert Aumann) for "having enhanced our understanding of conflict and cooperation through game-theory analysis." Biography Early years Schelling was born on April 14, 1921 in Oakland, California. Schelling graduated from San Diego High. He received his bachelor's degree in economics from the University of California, Berkeley in 1944. He received his PhD in economics from Harvard University in 1951. Career Schelling served with the Marshall Plan in Europe, the White House, and the Executive Office of the President from 1948 to 1953. He wrote most of his dissertation on national income ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Focal Point Squares
Focal or FOCAL may refer to: *Focal (lexicographical website), an Irish lexicographical website *FOCAL (programming language), a programming language for the PDP-8 and similar machines *Focal (HP-41), for programming HP calculators *FOCAL (spacecraft), a proposed space telescope *FOCAL International, a trade body representing the film archive industry *Focal-JMLab, a French manufacturer of audio equipment *Focal Radio, a radio station based in Stoke-on-Trent, England *Focal neurologic signs See also *Focal point (other) Focal point may refer to: * Focus (optics) * Focus (geometry) * Conjugate points, also called focal points * Focal point (game theory) * Unicom Focal Point UNICOM Focal Point is a portfolio management and decision analysis tool used by the prod ... * Focus (other) * {{disambiguation ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Keynesian Beauty Contest
A Keynesian beauty contest is a concept developed by John Maynard Keynes and introduced in Chapter 12 of his work, ''The General Theory of Employment, Interest and Money'' (1936), to explain price fluctuations in equity markets. It describes a beauty contest where judges are rewarded for selecting the ''most popular'' faces among all judges, rather than those they may personally find the most attractive. Overview Keynes described the action of rational agents in a market using an analogy based on a fictional newspaper contest, in which entrants are asked to choose the six most attractive faces from a hundred photographs. Those who picked the most popular faces are then eligible for a prize. A naive strategy would be to choose the face that, in the opinion of the entrant, is the most handsome. A more sophisticated contest entrant, wishing to maximize the chances of winning a prize, would think about what the majority perception of attractiveness is, and then make a selection based ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
