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game_theory [2023/04/26 19:40] – [Game Theory] sabs | game_theory [2024/04/12 09:41] (current) – [The Prisoner's Dilemma] tom | ||
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====Nash Equilibrium==== | ====Nash Equilibrium==== | ||
- | The Nash Equilibrium[(Nash_equilibrium> | + | The Nash Equilibrium[(Nash_equilibrium> |
Formally, a Nash Equilibrium is a set of strategies, one for each player, such that no player has an incentive to deviate from their strategy given the strategies of the other players. This means that if all players follow their Nash Equilibrium strategies, the outcome is stable and cannot be improved upon by any single player changing their strategy. | Formally, a Nash Equilibrium is a set of strategies, one for each player, such that no player has an incentive to deviate from their strategy given the strategies of the other players. This means that if all players follow their Nash Equilibrium strategies, the outcome is stable and cannot be improved upon by any single player changing their strategy. | ||
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{{youtube> | {{youtube> | ||
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====The Pareto Efficiency==== | ====The Pareto Efficiency==== | ||
- | The Pareto Efficiency[(Pareto_efficiency> | + | The Pareto Efficiency[(Pareto_efficiency> |
- | , named after economist Vilfredo Pareto, is a concept in economics that describes a situation in which it is impossible to make any one individual better off without making another individual worse off. In other words, a Pareto efficient outcome is one in which no further improvement can be made without making at least one person worse off. Vilfredo Pareto (1848–1923) was an Italian engineer, sociologist, | + | |
The concept of Pareto Efficiency is used to assess the efficiency of economic systems and is often used as a benchmark for determining whether a proposed change will lead to a more efficient outcome. A change that makes one person better off and no one worse off is considered to be a Pareto improvement, | The concept of Pareto Efficiency is used to assess the efficiency of economic systems and is often used as a benchmark for determining whether a proposed change will lead to a more efficient outcome. A change that makes one person better off and no one worse off is considered to be a Pareto improvement, | ||
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====Correlated Equilibrium==== | ====Correlated Equilibrium==== | ||
- | Correlated Equilibrium[(Correlated_equilibrium> | + | Correlated Equilibrium[(Correlated_equilibrium> |
- | is a solution concept in game theory that extends the Nash Equilibrium by allowing for randomization or correlation in the strategies of the players. In a Correlated Equilibrium, | + | |
The concept of Correlated Equilibrium allows for the possibility of coordination and cooperation between players, as their strategies can be correlated in a way that benefits all players. This makes Correlated Equilibrium a more realistic solution concept in situations where coordination and cooperation are important. | The concept of Correlated Equilibrium allows for the possibility of coordination and cooperation between players, as their strategies can be correlated in a way that benefits all players. This makes Correlated Equilibrium a more realistic solution concept in situations where coordination and cooperation are important. | ||
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====Rawlsian Fairness Criterion==== | ====Rawlsian Fairness Criterion==== | ||
- | The Rawlsian[(Justice_as_Fairness> | + | The Rawlsian[(Justice_as_Fairness> |
- | fairness criterion is a solution concept in social and political philosophy that is named after philosopher John Rawls. The Rawlsian fairness criterion is used to evaluate the fairness of a particular outcome or distribution of resources in a society. John Rawls (1921–2002) was an American philosopher and political economist. He is widely regarded as one of the most important political philosophers of the 20th century and is best known for his theory of justice as fairness, which is presented in his seminal work "A Theory of Justice." | + | |
The Rawlsian fairness criterion is based on two principles of justice: the first, the principle of equal basic liberties, states that everyone is entitled to a set of basic liberties and rights that cannot be taken away; the second, | The Rawlsian fairness criterion is based on two principles of justice: the first, the principle of equal basic liberties, states that everyone is entitled to a set of basic liberties and rights that cannot be taken away; the second, | ||
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The prisoner' | The prisoner' | ||
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<WRAP CENTER 50%> | <WRAP CENTER 50%> | ||
{{youtube> | {{youtube> |