Understanding Economics: Game Theory

Game Theory Basics: The Prisoner’s Dilemma (1x1)

Udgivelsesdato: Mar 01, 2021

Begin your study of game theory by considering the difference between a decision and a game. Then look at two key concepts, dominant strategy and the Nash equilibrium—the latter named for mathematician John F. Nash, profiled in the movie A Beautiful Mind. Use these ideas to interpret the notorious prisoner’s dilemma, where two rational individuals with strong incentives to cooperate choose not to.