here's a game. 2 lunatics are playing a game. they each have a bottle and they are suppose to kill the other party. Player A prefers death, Player B prefers jail. so we put it in a diagram form. A get 1 point for dying and 0 point for jail. B get 1 point for jail and 0 point for death. dominant strategy: B kills A. B get jail sentence and A dies. 1 point each. Folk theorem: collude until someone defect. ie to say, B will kill A. and they will get a point each. and will keep doing that until A started retaliating or B changed his stance (in both sense, it sounded weird, cos A's dead. with A dead, only way for B to be death is to commit suicide) Nash equilibrium:each player to play his dominant strategy and the equilibrium will be at B kills A. TY equilibrium: we have an option not to play the game. in this case. each player get 2 point by staying out of the game and the game don't even exist.
Now, there is at least one reason why i didn't get A+ for econs last year...
posted @ 12:41 AM ||
Profile
name: Tianyu
Passion: Maths, Music, Table Tennis
sex: M
philosophy: many people knows different part of me, but one thing in common is i will not
allow myself to fall *Elandriel*
