Game Theory 101: The Prisoner's Dilemma

http://gametheory101.com/Textbook.html

William Spaniel shows how to find the equilibrium solution to a prisoner's dilemma using the strict dominance solution concept.

Category:

Education

Tags:

• How
• To
• Solve
• Game
• Theory
• 101
• The
• Basics
• Explained
• Clip
• Prisoner's
• Dilemma
• Dominance
• Lecture
• Nash
• Equilibrium
• Economics
• 賽局理論
• теория
• игр
• תורת
• המשחקים

[Andreas0424]

I hear what you're saying about stability, but I'm not satisfied. Of course the fundamental issue is trust: even if both players understand the trap and agree beforehand not to fall into it, neither can be absolutely sure that the other player won't try to exploit that trust and confess. The problem is that this dilemma exists in isolation, whereas in reality they do not. We're not only trusting in the agreement, we're trusting in their understanding that they are setting a precedent.

[JimBobJenkins]

@Andreas0424 You right that can get cooperation if you play this game repeatedly (and indefinitely), but there is no precedent to set in the one-shot version of the game (like the one in the video).

[Andreas0424]

@JimBobJenkins Oh OK, thanks for clearing that up! Did Nash develop any one-play games where cooperation is immediately preferable?

[JimBobJenkins]

@Andreas0424 @Andreas0424 Nash didn't really come up with any of these games. The "stag hunt" seems to be what you are looking for, though.

[Andreas0424]

@Andreas0424 Kant called this precedent the categorical imperative. Plato refers to it in his defense of Justice. It is the ruling principle of Rule Utilitarianism.

Our fear of living in a world without trust, and our awareness that our own abusing of trust brings that world closer, moves us to a sort of "selfish cooperation." Wasn't this Nash's crowning achievement? Isn't the solution (from the prisoners' perspective) then for neither to confess?

[rockuser28]

Can't wait for my next lesson. But since Mr Jenkins(?) can't put me on detention if I fail, but I just rewatch and try again.

[Psycatalyst]

Can you do a video on VCG auction and Mechanism Design?