|
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 th ... [...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 d ... [...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 Microeconomics is a branch of mainstream economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms. Microeconomics foc ... and game theory. Areas of specialization include the theory of repeated games and the evolutionary foundations of economic behavior. Samue ... [...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 1990. The ... [...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 Selected publications * * * * * * * * References External links Personal web pageat University of Tokyo , abbreviated as or UTokyo, is a public research university located in Bunkyō, Tokyo, Japan. Established in 1877, the university was the first Imperial University and is currently a Top Type university of the Top Global University Project b ... 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 Princeton ... [...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] |
