What Is Game Theory in Economics?
Players decide, a strategy is a complete plan, and a payoff is what a player gets from one combination of choices.
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1.Which three parts does every game have?
Players decide, a strategy is a complete plan, and a payoff is what a player gets from one combination of choices.
2.What is a dominant strategy?
A dominant strategy is best whatever the other player does; not every game has one.
3.Leo holds: Marge cutting pays 8 instead of 6. Leo cuts: cutting pays 4 instead of 2. What follows?
Cutting is dominant for both, so both cut and each earns 4.
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Sources (4)
- Prisoner's dilemma (Wikipedia, englisch)
- The Evolution of Cooperation (Wikipedia, englisch), Axelrod-Turniere
- Sveriges Riksbank Prize in Economic Sciences 1994 (Nobel Prize Outreach)
- Eigene Rechnung: synthetisches Preisspiel zweier Marktstaende
Education only. Not financial advice.