Game Theory

Groupe 8

What is Game theory?

It is an theory that is uesd in a kind of equal game,and it can help the users get more possible to be the winner.but why it is so amazing and magical.let’s do some research and play games.

1.Prisoner’s dilemma 2.Beautiful woman and coin 3.The gift of Maggie 4.The summary

Prisoner’s dilemma Now,it has a story,long long ago.Two prisoner were caught by the police,and they were separated into diffierent room.Having no way to communicate.If one admit but the other lie.Person who lie will be locked up 10 years and the honest person will be locked up only 3 months.If they both lie,they will be locked up 1 years.If they both admit,they will be locked up 5 years.Now they have to do a important choice which decides their future.

How to decide

Yeah,now,they only have two choice-----lying or admiting， it has diffierent conclusion depend on diffierent situation,every result is in the backgroud,Ok,if you are the one of them,how to decide,you will lie or admit?

Prisoner B

lie admit

Prisoner A

lie 1 year 1 year

3 months10 years

admit 10 years3 months

5 years5 years

When you are bored,a beautiful woman goes to talk with you ,and wants to play with you,she says she and you show one side of the coin ,and if both show the front side of the coin,she will give you three yuan ,if both show the back side of the coin,she will give you one yuan,else you give she two yuan .of course ,we will choose to play with her,but if we think of this game in the economics angle ,this game is fair to us?

Beauty and Coins

The three examples are the famous application cases.We can get different results when we choose different. Everyone wants to get the biggest benefit or the minimum loss.For the person who join the game,with no discussion,both of them would face difficulties.So before they make a choice,they must consider the game fully.

Summary

• Then we find four lessons from game :

• 1.Don't play a strictly dominated strategy.

• 2.Rational choices can lead to bad outcomes.

• 3.You can't get what you want.

• 4.Put yourself in other people's shoes.

That's all

Thanks