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Payoff Dominant Equilibrium
Risk dominance and payoff dominance are two related refinements of the Nash equilibrium (NE) solution concept in game theory, defined by John Harsanyi and Reinhard Selten. A Nash equilibrium is considered payoff dominant if it is Pareto superior to all other Nash equilibria in the game. When faced with a choice among equilibria, all players would agree on the payoff dominant equilibrium since it offers to each player at least as much payoff as the other Nash equilibria. Conversely, a Nash equilibrium is considered risk dominant if it has the largest basin of attraction (i.e. is less risky). This implies that the more uncertainty players have about the actions of the other player(s), the more likely they will choose the strategy corresponding to it. The payoff matrix in Figure 1 provides a simple two-player, two-strategy example of a game with two pure Nash equilibria. The strategy pair (Hunt, Hunt) is payoff dominant since payoffs are higher for both players compared to ... [...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] |
Credible Commitment
A commitment device is, according to journalist Stephen J. Dubner and economist Steven Levitt, a way to lock oneself into following a plan of action that one might not want to do, but which one knows is good for oneself. In other words, a commitment device is a way to give oneself a reward or punishment to make an empty promise stronger and believable. A commitment device is a technique where someone makes it easier for themselves to avoid akrasia (acting against one's better judgment), particularly procrastination. Commitment devices have two major features. They are voluntarily adopted for use and they tie consequences to follow-through failures. Consequences can be immutable (irreversible, such as a monetary consequence) or mutable (allows for the possibility of future reversal of the consequence). Overview The term "commitment device" is used in both economics and game theory. In particular, the concept is relevant to the fields of economics and especially the study of de ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Larry Samuelson
Larry Samuelson (born April 2, 1953) is the A. Douglas Melamed Professor of Economics at Yale University and one of the faculty of the Cowles Foundation of Yale University. Samuelson earned his B.A. in economics/political science from the University of Illinois in 1974. He continued on with the University of Illinois for both his master's degree in 1977 and his PhD in 1978—both in economics. He has previously held faculty positions at the University of Florida, Syracuse University, Penn State and the University of Wisconsin. He has made significant contributions to microeconomic theory and 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 appli .... Areas of specialization include the theory of repeated games and the evolutionary foundations of economic behavior. Sam ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Rafael Rob
Rafael Robb (born October 31, 1950) is an economist and former professor at the University of Pennsylvania who confessed to killing his wife in 2006. Academic career Robb received his bachelor's degree from the Hebrew University of Jerusalem. He went on to obtain a Ph.D. in economics at UCLA. Robb joined the University of Pennsylvania faculty in 1984, and was a tenured professor at the time of his arrest in 2007. Robb specialized in game theory, a mathematical discipline used to analyze political, economic, and military strategies. He has published numerous papers on game theory and other economic topics with scholars from Greece, Israel, Japan, and the US. In most of the papers, his family name is spelled as "Rob". He is also a fellow of the Econometric Society, one of the highest honors in economics. Personal life Robb grew up in Israel, and emigrated to the US to pursue graduate studies. He met Ellen Gregory Robb, a sales manager, in 1987, and they married in 199 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Michihiro Kandori
is a Japanese economist. He is a professor at the University of Tokyo. Career He received a B.A. from University of Tokyo in 1982 and a Ph.D. from Stanford University in 1989. Recognition * 1999: Fellow, Econometric Society * 2002: Japanese Economic Association-Nakahara Prize * 2017: R. K. Cho Economics Prize The R. K. Cho Economics Prize is awarded by Yonsei University in Seoul, South Korea to academics in the field of economics who have contributed to the development of scholarship and education. As of 2018, the prize includes a plaque, a medal, a ... Selected publications * * * * * * * * References External links Personal web pageat University of Tokyo 1959 births Living people People from Sapporo 20th-century Japanese economists 21st-century Japanese economists Game theorists University of Tokyo alumni Stanford University alumni Fellows of the Econometric Society University of Tokyo faculty University of Pennsylvania faculty Prin ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Stochastically Stable
In game theory, a stochastically stable equilibrium is a refinement of the evolutionarily stable state in evolutionary game theory, proposed by Dean Foster and Peyton Young. An evolutionary stable state S is also stochastically stable if under vanishing noise, the probability that the population is in the vicinity of state S does not go to zero. The concept is extensively used in models of learning in populations, where "noise" is used to model experimentation or replacement of unsuccessful players with new players (random mutation). Over time, as the need for experimentation dies down or the population becomes stable, the population will converge towards a subset of evolutionarily stable states. Foster and Young have shown that this subset is the set of states with the highest potential Potential generally refers to a currently unrealized ability. The term is used in a wide variety of fields, from physics to the social sciences to indicate things that are in a state where the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mutation
In biology, a mutation is an alteration in the nucleic acid sequence of the genome of an organism, virus, or extrachromosomal DNA. Viral genomes contain either DNA or RNA. Mutations result from errors during DNA or viral replication, mitosis, or meiosis or other types of damage to DNA (such as pyrimidine dimers caused by exposure to ultraviolet radiation), which then may undergo error-prone repair (especially microhomology-mediated end joining), cause an error during other forms of repair, or cause an error during replication (translesion synthesis). Mutations may also result from insertion or deletion of segments of DNA due to mobile genetic elements. Mutations may or may not produce detectable changes in the observable characteristics (phenotype) of an organism. Mutations play a part in both normal and abnormal biological processes including: evolution, cancer, and the development of the immune system, including junctional diversity. Mutation is the ultimate source o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Strategy Revision
Strategy (from Greek στρατηγία ''stratēgia'', "art of troop leader; office of general, command, generalship") is a general plan to achieve one or more long-term or overall goals under conditions of uncertainty. In the sense of the "art of the general", which included several subsets of skills including military tactics, siegecraft, logistics etc., the term came into use in the 6th century C.E. in Eastern Roman terminology, and was translated into Western vernacular languages only in the 18th century. From then until the 20th century, the word "strategy" came to denote "a comprehensive way to try to pursue political ends, including the threat or actual use of force, in a dialectic of wills" in a military conflict, in which both adversaries interact. Strategy is important because the resources available to achieve goals are usually limited. Strategy generally involves setting goals and priorities, determining actions to achieve the goals, and mobilizing resources to execu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Best Response
In game theory, the best response is the strategy (or strategies) which produces the most favorable outcome for a player, taking other players' strategies as given (; ). The concept of a best response is central to John Nash's best-known contribution, the Nash equilibrium, the point at which each player in a game has selected the best response (or one of the best responses) to the other players' strategies . Correspondence Reaction correspondences, also known as best response correspondences, are used in the proof of the existence of mixed strategy Nash equilibria (, Section 1.3.B; , Section 2.2). Reaction correspondences are not "reaction functions" since functions must only have one value per argument, and many reaction correspondences will be undefined, i.e., a vertical line, for some opponent strategy choice. One constructs a correspondence b(\cdot), for each player from the set of opponent strategy profiles into the set of the player's strategies. So, for any given set o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Replicator Dynamics
In mathematics, the replicator equation is a deterministic monotone non-linear and non-innovative game dynamic used in evolutionary game theory. The replicator equation differs from other equations used to model replication, such as the quasispecies equation, in that it allows the fitness function to incorporate the distribution of the population types rather than setting the fitness of a particular type constant. This important property allows the replicator equation to capture the essence of selection. Unlike the quasispecies equation, the replicator equation does not incorporate mutation and so is not able to innovate new types or pure strategies. Equation The most general continuous form of the replicator equation is given by the differential equation: : \dot = x_i f_i(x) - \phi(x) \quad \phi(x) = \sum_^ where x_i is the proportion of type i in the population, x=(x_1, \ldots, x_n) is the vector of the distribution of types in the population, f_i(x) is the fitness of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mixed Strategy
In game theory, a player's strategy is any of the options which they choose in a setting where the outcome depends ''not only'' on their own actions ''but'' on the actions of others. The discipline mainly concerns the action of a player in a game affecting the behavior or actions of other players. Some examples of "games" include chess, bridge, poker, monopoly, diplomacy or battleship. A player's strategy will determine the action which the player will take at any stage of the game. In studying game theory, economists enlist a more rational lens in analyzing decisions rather than the psychological or sociological perspectives taken when analyzing relationships between decisions of two or more parties in different disciplines. The strategy concept is sometimes (wrongly) confused with that of a move. A move is an action taken by a player at some point during the play of a game (e.g., in chess, moving white's Bishop a2 to b3). A strategy on the other hand is a complete algorithm for p ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Pure Strategy
In game theory, a player's strategy is any of the options which they choose in a setting where the outcome depends ''not only'' on their own actions ''but'' on the actions of others. The discipline mainly concerns the action of a player in a game affecting the behavior or actions of other players. Some examples of "games" include chess, bridge, poker, monopoly, diplomacy or battleship. A player's strategy will determine the action which the player will take at any stage of the game. In studying game theory, economists enlist a more rational lens in analyzing decisions rather than the psychological or sociological perspectives taken when analyzing relationships between decisions of two or more parties in different disciplines. The strategy concept is sometimes (wrongly) confused with that of a move. A move is an action taken by a player at some point during the play of a game (e.g., in chess, moving white's Bishop a2 to b3). A strategy on the other hand is a complete algorithm for ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
