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Centipede Game
In game theory, the centipede game, first introduced by Robert Rosenthal in 1981, is an extensive form game in which two players take turns choosing either to take a slightly larger share of an increasing pot, or to pass the pot to the other player. The payoffs are arranged so that if one passes the pot to one's opponent and the opponent takes the pot on the next round, one receives slightly less than if one had taken the pot on this round, but after an additional switch the potential payoff will be higher. Therefore, although at each round a player has an incentive to take the pot, it would be better for them to wait. Although the traditional centipede game had a limit of 100 rounds (hence the name), any game with this structure but a different number of rounds is called a centipede game. The unique subgame perfect equilibrium (and every Nash equilibrium) of these games results in the first player taking the pot on the first round of the game; however, in empirical tests, rel ... [...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 mathem ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Social Value Orientations
In social psychology, social value orientation (SVO) is a person's preference about how to allocate resources (e.g. money) between the self and another person. SVO corresponds to how much weight a person attaches to the welfare of others in relation to the own. Since people are assumed to vary in the weight they attach to other peoples' outcomes in relation to their own, SVO is an individual difference variable. The general concept underlying SVO has become widely studied in a variety of different scientific disciplines, such as economics, sociology, and biology under a multitude of different names (e.g. ''social preferences'', ''other-regarding preferences'', ''welfare tradeoff ratios'', ''social motives'', etc.). Historical background The SVO construct has its history in the study of interdependent decision making, i.e. strategic interactions between two or more people. The advent of Game theory in the 1940s provided a formal language for describing and analyzing situations of in ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
American Economic Review
The ''American Economic Review'' is a monthly peer-reviewed academic journal published by the American Economic Association. First published in 1911, it is considered one of the most prestigious and highly distinguished journals in the field of economics. The current editor-in-chief is Esther Duflo, an economic professor at the Massachusetts Institute of Technology. The journal is based in Pittsburgh. In 2004, the ''American Economic Review'' began requiring "data and code sufficient to permit replication" of a paper's results, which is then posted on the journal's website. Exceptions are made for proprietary data. Until 2017, the May issue of the ''American Economic Review'', titled the ''Papers and Proceedings'' issue, featured the papers presented at the American Economic Association's annual meeting that January. After being selected for presentation, the papers in the ''Papers and Proceedings'' issue did not undergo a formal process of peer review. Starting in 2018, papers ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Unexpected Hanging Paradox
The unexpected hanging paradox or surprise test paradox is a paradox about a person's expectations about the timing of a future event which they are told will occur at an unexpected time. The paradox is variously applied to a prisoner's hanging or a surprise school test. It was first introduced to the public in Martin Gardner's March 1963 Mathematical Games column in ''Scientific American'' magazine. There is no consensus on its precise nature and consequently a canonical resolution has not been agreed on. Logical analyses focus on "truth values", for example by identifying it as paradox of self-reference. Epistemological studies of the paradox instead focus on issues relating to ''knowledge''; for example, one interpretation reduces it to Moore's paradox. Some regard it as a "significant problem" for philosophy. Description The paradox has been described as follows: Other versions of the paradox replace the death sentence with a surprise fire drill, examination, pop quiz, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Traveler's Dilemma
In game theory, the traveler's dilemma (sometimes abbreviated TD) is a non-zero-sum game in which each player proposes a payoff. The lower of the two proposals wins; the lowball player receives the lowball payoff plus a small bonus, and the highball player receives the same lowball payoff, minus a small penalty. Surprisingly, the Nash equilibrium is for both players to aggressively lowball. The traveler's dilemma is notable in that naive play appears to outperform the Nash equilibrium; this apparent paradox also appears in the centipede game and the finitely-iterated prisoner's dilemma. Formulation The original game scenario was formulated in 1994 by Kaushik Basu and goes as follows: "An airline loses two suitcases belonging to two different travelers. Both suitcases happen to be identical and contain identical antiques. An airline manager tasked to settle the claims of both travelers explains that the airline is liable for a maximum of $100 per suitcase—he is unable to find o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Experimental Economics
Experimental economics is the application of experimental methods to study economic questions. Data collected in experiments are used to estimate effect size, test the validity of economic theories, and illuminate market mechanisms. Economic experiments usually use cash to motivate subjects, in order to mimic real-world incentives. Experiments are used to help understand how and why markets and other exchange systems function as they do. Experimental economics have also expanded to understand institutions and the law (experimental law and economics). A fundamental aspect of the subject is design of experiments. Experiments may be conducted in the field or in laboratory settings, whether of individual or group behavior. Variants of the subject outside such formal confines include natural and quasi-natural experiments. Experimental topics One can loosely classify economic experiments using the following topics: * Markets * Games * Evolutionary game theory * Decision making * ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Backward Induction
Backward induction is the process of reasoning backwards in time, from the end of a problem or situation, to determine a sequence of optimal actions. It proceeds by examining the last point at which a decision is to be made and then identifying what action would be most optimal at that moment. Using this information, one can then determine what to do at the second-to-last time of decision. This process continues backwards until one has determined the best action for every possible situation (i.e. for every possible information set) at every point in time. Backward induction was first used in 1875 by Arthur Cayley, who uncovered the method while trying to solve the infamous Secretary problem. In the mathematical optimization method of dynamic programming, backward induction is one of the main methods for solving the Bellman equation. In game theory, backward induction is a method used to compute subgame perfect equilibria in sequential games. The only difference is that optimiza ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Prisoner's Dilemma
The Prisoner's Dilemma is an example of a game analyzed in game theory. It is also a thought experiment that challenges two completely rational agents to a dilemma: cooperate with their partner for mutual reward, or betray their partner ("defect") for individual reward. This dilemma was originally framed by Merrill Flood and Melvin Dresher while working at RAND in 1950. Albert W. Tucker appropriated the game and formalized it by structuring the rewards in terms of prison sentences and named it "prisoner's dilemma". William Poundstone in his 1993 book ''Prisoner's Dilemma'' writes the following version:Two members of a criminal gang are arrested and imprisoned. Each prisoner is in solitary confinement with no means of speaking to or exchanging messages with the other. The police admit they don't have enough evidence to convict the pair on the principal charge. They plan to sentence both to two years in prison on a lesser charge. Simultaneously, the police offer each prison ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Action Bias
Action bias is the psychological phenomenon where people tend to favor action over inaction, even when there is no indication that doing so would point towards a better result. It is an automatic response, similar to a reflex or an impulse and is not based on rational thinking. One of the first appearances of the term "action bias" in scientific journals was in a 2000 paper by Patt and Zechenhauser titled "Action Bias and Environmental Decisions", where its relevance in politics was expounded. Overview People tend to have a preference for well-justified actions. The term “action bias” refers to the subset of such voluntary actions that one takes even when there is no explicitly good reason to do so. In the case of a decision with both positive and negative outcomes, action will be taken in favor of achieving an apparent advantageous final result, which is preferred over inactivity. If besides gains, losses occur or resources are redistributed adversely, this will be negle ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Grandmaster (chess)
Grandmaster (GM) is a title awarded to chess players by the world chess organization FIDE. Apart from World Champion, Grandmaster is the highest title a chess player can attain. Once achieved, the title is held for life, though exceptionally it has been revoked for cheating. The title of Grandmaster, along with the lesser FIDE titles of International Master (IM) and FIDE Master (FM), is open to all players regardless of gender. The great majority of grandmasters are men, but 40 women have been awarded the GM title as of 2022, out of a total of about 2000 grandmasters. Since about the year 2000, most of the top 10 women have held the GM title. There is also a Woman Grandmaster title with lower requirements awarded only to women. There are also Grandmaster titles for composers and solvers of chess problems, awarded by the World Federation for Chess Composition (see List of grandmasters for chess composition). The International Correspondence Chess Federation (ICCF) awards t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Elo Rating System
The Elo rating system is a method for calculating the relative skill levels of players in zero-sum games such as chess. It is named after its creator Arpad Elo, a Hungarian-American physics professor. The Elo system was invented as an improved chess-rating system over the previously used Harkness system, but is also used as a rating system in association football, American football, baseball, basketball, pool, table tennis, and various board games and esports. The difference in the ratings between two players serves as a predictor of the outcome of a match. Two players with equal ratings who play against each other are expected to score an equal number of wins. A player whose rating is 100 points greater than their opponent's is expected to score 64%; if the difference is 200 points, then the expected score for the stronger player is 76%. A player's Elo rating is represented by a number which may change depending on the outcome of rated games played. After every game, the winn ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Chess
Chess is a board game for two players, called White and Black, each controlling an army of chess pieces in their color, with the objective to checkmate the opponent's king. It is sometimes called international chess or Western chess to distinguish it from related games, such as xiangqi (Chinese chess) and shogi (Japanese chess). The recorded history of chess goes back at least to the emergence of a similar game, chaturanga, in seventh-century India. The rules of chess as we know them today emerged in Europe at the end of the 15th century, with standardization and universal acceptance by the end of the 19th century. Today, chess is one of the world's most popular games, played by millions of people worldwide. Chess is an abstract strategy game that involves no hidden information and no use of dice or cards. It is played on a chessboard with 64 squares arranged in an eight-by-eight grid. At the start, each player controls sixteen pieces: one king, one queen, two rooks, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
