This playlist has been so helpful. So upset I only found out about it the day before I write my last exam for Economic but glad I did so I can share it with others.
If I go there will be trouble, but if I stay it will be double. So obviously the expected outcome is twice as much staying, but whether trouble is has a positive or negative value is left as an exercise to the reader. :)
We are in a multiple equilibrum so wether you stay or go , you are indifferent to both choice so you can flip a coin and decide.....it'll be the same OUTCOME!
@@ivoriankoua3916 Wouldn't stay though still be the most optimal. If knowing stay and go = the same. Than the only other variable I see is the time it would time to go rather than stay and saving time is always the most optimal move is it not?
Hi william :) Thankyou for the amazin videos. i just wanted to ask one question, After solving this, how can we right the answer to this problem that represents the equilibria for both the players? Hope you see the question as the video is quite old.
Hey Will, I just finished reading Lesson 2.3: Multiple Subgame Perfect Equilibria of your Textbook and am now currently on the "Takeaway Points" on page 136. I'm confused as to whether or not the 1st point is true or if it was a mistake and wanted to verify it. It says: "If each player's payoffs are unique for that player and the game has simultaneous moves, the game has a unique SPE." Shouldn't it say: If each player's payoffs are unique for the player and the game has *NO* simultaneous moves (only sequential), the game has a unique SPE. ?? Feedback would be appreciated!
Hi William, Thank you very much for this video, and the rest of the videos in the series. They really are extremely helpful! Ive got a quick question: is the probability p for player 1 just any probability between 0 and 1, inclusive?
Question: Since P2 knows that P1 will choose Up if she goes Left, and Down if she goes Right, shouldn't she be simply comparing the payoffs of -3 and 0 and hence choose to go right? In which case P1 will compare 0 to -1/3 and choose to go?
As I see it player 2 should slip a payment of 1 unit to player 1 to get him to select Stay. Player 1 should, of course, ask for a backhander of 2 units.
Hello Mr Spaniel, just wanted to ask if there was a proper way of notating the multiple SPEs. For example in the last video you wrote ; For this would it be ? Thank you!
Is there a reason why you are not referring to this as imperfect information, or as a singleton set? I find the terminology pretty confusing myself but I wonder if it applies here correctly
@@Gametheory101 right thank you, does "player 2's move has imperfect information" mean the same thing as "player 2's move is NOT a singleton" in this context. thanks for clarifying by the way
Can someone please help me..For an extensive Form game with imperfect information, how do I find the / a pure Nash equilibrium? Is there even a pure Nash Equilibrium I am so confused by now
Hey William, I'm learning the basic game theory by watching your video's. But I have a question about this problem, that has been bugging me. In this case, if P1 is a purly rational being, then he has to know that There is a different outcome for P2 depending on his choise. Doesn't this bring a whole new subgame with it? Cause the relation of P1 and P2 will change based on P1 his choise to go or stay. So how do we quantify the relation between the two? I will try to ask the same question again, because English is not m native language and I want to get my point across. Lets say P1 is a purely rational being. He knows there is no strategy (go or stay) that benefits him, but what he chooses affects her. So if he is a rational being, he must know this to. Doesn't his strategy will change depending on the dinamic of the relationship between the two. For example if he hates her, he will choose go (less payout for her) and if he likes her he would stay cause the payout is bigger for her. Is there anyway to quantify this underlying game? I hope you understand my question, thanks for the awesome lessons. Kind regards Jasper
+Jasper Vandenbrande I think I understand what you are asking, and it is a fairly common question. Any preference for altruism or hatred of the other player is already built into the payoffs. Thus, you don't have to think about these things once you are solving the game, otherwise you are essentially double-counting the preference. I talk more about this in the textbook and leave it out of the videos since it is more of a modeling issue than a mechanical one.
+William Spaniel Thanks for the quick response. I liked you because of your great vids, now I like you even more because you are a nice guy :). I can accept that those feelings are hidden in the numbers, but I want to understand how that is done. Can you give me an example of turning a real life situation into a game theory problem? I mean how do you quantify feelings like hatred and love for each other. I have a good understanding of math on a bachelor level, so you can use equations or function if that makes the explaining easier. If this is explained in your later videos, just accept the complement and send me to watch those, I only move on to the next video if I understand the previous completely :D Kind regards Jasper
As far as I understand, this is a mixture of a Sequential Game (Player 1 chooses to Stay or Go first) and Simultaneous Game (Player 1 moves Up/Down and Player 2 moves Left/Right simultaneously)? If this is just a Sequential Game, Player 1 will know Player 2 will definitely move Right (because she knows Player 1 would go Down if she moves Right, and go Up if she moves Left).
@@allenhuntsman I've had a good time seeing what replies these types of comments generate. Another thing I've done is to ask people how their test went whenever someone comments that they have one coming up. Some people have even replied after a decade!
@@allenhuntsman I'm not in a game theory class either, but I do tutor people in a fair number of subjects and I'm curious about those subjects too. Therefore I find myself on the educational side of RUclips fairly regularly. However, I also enjoy other stuff on here, including scary story narration videos and videos related to simulation and programming.
Hello ladies land gentlemen, I suggest we create a WhatsApp platform where can solve challenging problems in game theory. Drop your contact if you're in!! Thank you and see you in the platform.
This playlist has been so helpful. So upset I only found out about it the day before I write my last exam for Economic but glad I did so I can share it with others.
How did the exam go?
How would you write down the subgame perfect elquilibria in that example?
This videos are great! Short, to the point and very clear. Thank you William. :)
William thank you so much for this clear explanation! Preparation for the exam without your course would be really difficult.
should i stay or should it go?
come on just lemme know. should i stay or should i go.
If I go there will be trouble, but if I stay it will be double.
So obviously the expected outcome is twice as much staying, but whether trouble is has a positive or negative value is left as an exercise to the reader. :)
We are in a multiple equilibrum so wether you stay or go , you are indifferent to both choice so you can flip a coin and decide.....it'll be the same OUTCOME!
@@ivoriankoua3916 Flipping a coin!?
This indecision's bugging me. If you don't want me set me free!
@@ivoriankoua3916 Wouldn't stay though still be the most optimal. If knowing stay and go = the same. Than the only other variable I see is the time it would time to go rather than stay and saving time is always the most optimal move is it not?
Hi william :)
Thankyou for the amazin videos.
i just wanted to ask one question,
After solving this, how can we right the answer to this problem that represents the equilibria for both the players?
Hope you see the question as the video is quite old.
Hey Will,
I just finished reading Lesson 2.3: Multiple Subgame Perfect Equilibria of your Textbook and am now currently on the "Takeaway Points" on page 136. I'm confused as to whether or not the 1st point is true or if it was a mistake and wanted to verify it. It says:
"If each player's payoffs are unique for that player and the game has simultaneous moves, the game has a unique SPE."
Shouldn't it say:
If each player's payoffs are unique for the player and the game has *NO* simultaneous moves (only sequential), the game has a unique SPE.
?? Feedback would be appreciated!
You are right, thanks for letting me know!
Hi William,
Thank you very much for this video, and the rest of the videos in the series. They really are extremely helpful!
Ive got a quick question: is the probability p for player 1 just any probability between 0 and 1, inclusive?
That is correct.
Question: Since P2 knows that P1 will choose Up if she goes Left, and Down if she goes Right, shouldn't she be simply comparing the payoffs of -3 and 0 and hence choose to go right? In which case P1 will compare 0 to -1/3 and choose to go?
SandyWolfy Your premise is incorrect P2 knows that P1 doesnt know her move.
As I see it player 2 should slip a payment of 1 unit to player 1 to get him to select Stay.
Player 1 should, of course, ask for a backhander of 2 units.
thank you very much!
william, shouldnt the payoff for up (player 1) and right (p2) be 0,0 instead of -2,2?
Looks right to me.
Hello Mr Spaniel, just wanted to ask if there was a proper way of notating the multiple SPEs.
For example in the last video you wrote ;
For this would it be ?
Thank you!
Is there a reason why you are not referring to this as imperfect information, or as a singleton set? I find the terminology pretty confusing myself but I wonder if it applies here correctly
Yep, the game has imperfect information at player 2's move.
@@Gametheory101 right thank you, does "player 2's move has imperfect information" mean the same thing as "player 2's move is NOT a singleton" in this context. thanks for clarifying by the way
@@benbernanke4037 Yep
Can someone please help me..For an extensive Form game with imperfect information, how do I find the / a pure Nash equilibrium?
Is there even a pure Nash Equilibrium
I am so confused by now
Hey William, I'm learning the basic game theory by watching your video's. But I have a question about this problem, that has been bugging me. In this case, if P1 is a purly rational being, then he has to know that There is a different outcome for P2 depending on his choise. Doesn't this bring a whole new subgame with it? Cause the relation of P1 and P2 will change based on P1 his choise to go or stay. So how do we quantify the relation between the two?
I will try to ask the same question again, because English is not m native language and I want to get my point across. Lets say P1 is a purely rational being. He knows there is no strategy (go or stay) that benefits him, but what he chooses affects her. So if he is a rational being, he must know this to. Doesn't his strategy will change depending on the dinamic of the relationship between the two. For example if he hates her, he will choose go (less payout for her) and if he likes her he would stay cause the payout is bigger for her. Is there anyway to quantify this underlying game?
I hope you understand my question, thanks for the awesome lessons.
Kind regards
Jasper
+Jasper Vandenbrande I think I understand what you are asking, and it is a fairly common question. Any preference for altruism or hatred of the other player is already built into the payoffs. Thus, you don't have to think about these things once you are solving the game, otherwise you are essentially double-counting the preference. I talk more about this in the textbook and leave it out of the videos since it is more of a modeling issue than a mechanical one.
+William Spaniel Thanks for the quick response. I liked you because of your great vids, now I like you even more because you are a nice guy :).
I can accept that those feelings are hidden in the numbers, but I want to understand how that is done. Can you give me an example of turning a real life situation into a game theory problem? I mean how do you quantify feelings like hatred and love for each other. I have a good understanding of math on a bachelor level, so you can use equations or function if that makes the explaining easier.
If this is explained in your later videos, just accept the complement and send me to watch those, I only move on to the next video if I understand the previous completely :D
Kind regards
Jasper
As far as I understand, this is a mixture of a Sequential Game (Player 1 chooses to Stay or Go first) and Simultaneous Game (Player 1 moves Up/Down and Player 2 moves Left/Right simultaneously)?
If this is just a Sequential Game, Player 1 will know Player 2 will definitely move Right (because she knows Player 1 would go Down if she moves Right, and go Up if she moves Left).
Multiple subgame? More like “These videos are never lame!” Thanks again for this wonderful series.
Your username is pun and you make dad jokes(dad puns?)... Nice
@@allenhuntsman I've had a good time seeing what replies these types of comments generate. Another thing I've done is to ask people how their test went whenever someone comments that they have one coming up. Some people have even replied after a decade!
@@PunmasterSTP That's pretty great!
Though I'm not studying for a test, I'm just studying cus I find it interesting
@@allenhuntsman I'm not in a game theory class either, but I do tutor people in a fair number of subjects and I'm curious about those subjects too. Therefore I find myself on the educational side of RUclips fairly regularly. However, I also enjoy other stuff on here, including scary story narration videos and videos related to simulation and programming.
@@PunmasterSTP Oh I see...
Well, it was nice to talk to you
Hope you have a good life, goodbye.
Hello ladies land gentlemen, I suggest we create a WhatsApp platform where can solve challenging problems in game theory. Drop your contact if you're in!! Thank you and see you in the platform.