Developments in Microeconomics ECC001 Topic 1 – Lectures 1 and 2 Recap – Expected Utility and Basic Game Theory Chris Wilson Handout 1 Topic 1: Recap – Expected Utility and Basic Game Theory 1 Expected Utility and Attitudes to Risk 2 Normal Form Games 2a Dominant Strategies 2b Nash Equilibrium 2c Continuous Strategy Spaces - Cournot 3 Extensive Form Games 3a Backward Induction and Subgame Perfection 2 You will be familiar with some of the content in this topic
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Decision theory tells what we may rationally prefer and not what we may rationally believe. Desires according to Hume‚ are original existences and not subject to rational assessment. Drier says this may be a bit of a bold statement but so what? It isn’t irrational that we have conflicting desires‚ but it is the decision out of them that is important. I don’t want sunburn. I stay inside. Trouble arises when I prefer staying in to sunbathing‚ sunbathing to short exposure and short exposure to staying
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The Relation of Narratives and Video Games Video games are a relatively new form of entertainment; the first video game is considered to be Tennis for Two (1958)‚ around fifty years ago‚ while film has been around for over one-hundred years‚ the printing press for over five-hundred‚ and storytelling for thousands of years before that. Because of its newness‚ video games are a developing medium‚ their conventions and potential have not been explored as fully in comparison with film and literature
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society. Equity theory is social justice theory‚ designed by Adams in 1963. It claims that individuals review the inputs and outcomes of themselves and others‚ and in situations of inequity‚ experience greater cognitive dissonance than individuals in equitable situations. This kind of equity is perceived as social justice in society (or company‚ or any other environment that involves individuals). Equity theory draws from exchange‚ dissonance‚ and social comparison theories in making predictions
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Introduction What is a game? When there are more than one actors making choices‚ they are playing a game. That’s to say‚ when you play a game‚ the consequence does not depend merely on your decision but also your rivals’. Usually‚ players play for fun with low risks‚ as poker and chess‚ however‚ no one can deny that playing games can be very serious. In order to reduce stakes and get better result‚ game theory appeared which is defined as the science of interactive decision-making. It is practical
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NI does not exist as a well-defined economic construct Module 2: Decision usefulness approach to financial reporting Decision Usefulness Approach - theory of investor decision making in order to infer the nature and types of information that investors need. PV Model (doesn’t work well in practice) Single Person Decision theory (concept of utility‚ investor maximizing his/her return; prior & posterior probabilities; Bayes Theorem) Information System (conditional probabilities;
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Game theory help managers make better strategic decisions when facing uncertainty of competitive conduct. it provides a structured process to make better strategic decision‚ it’s not new but now emphasis on as practical tool What decision we trying to make 1.Define strategic issue How related to other decision made in the market The others in the market consider entering or leaving it Which players’ actions most impact on our success 2.Determine the relevant players Strategist must be skilled
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Game Simulation that helps to have a view on new threats and opportunities. Many companies lack of unethical acts and behaviors‚ which results in the loss of stakeholders shares. Rethinking a company’s purpose in terms of societal needs can help to differentiate from competition‚ promote public trust‚ and increase stakeholder value. A company needs to have their mind set to do "good"‚ not just to do "well". This leads to the decision‚ which the simulation experience changes the existing shelved products
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Rules of the Game There was a Chinese kid that moved to the U.S‚ and she was interested to play chess. She learned how to play the game. She was great at beating the other players‚ and she had a talent for playing chess. When she was 9-years-old. She was a National Chess Champion‚ and became the most popular person in the U.S. She met Bobby Fischer‚ the most legendary chess player ever born. In the “Rules of the Game” the author Amy Tan Writes that life is like a chess game; when you’re losing
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FedEx versus Djoker: Through the Lens of Game Theory Term Paper | IIMK | PGP 15 Submitted By: Group 13 Ranjith P (PGP/015/041) Ankur Pandit (PGP/015/206) Anurag Butoliya (PGP/015/207) Paran Gupta (PGP/015/240) FedEx versus Djoker: Through the Lens of game Theory Executive Summary: Being inspired by the recent clash between Federer and Djokovic in Wimbledon 2012‚ we as a group decided to explore the game theory dynamics of this celebrated matchup. Both these players
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