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Centipede Game
In game theory, the centipede game, first introduced by Robert W. Rosenthal, Robert Rosenthal in 1981, is an extensive form game in which two players take turns choosing either to take a slightly larger share of an increasing pot, or to pass the pot to the other player. The payoffs are arranged so that if one passes the pot to one's opponent and the opponent takes the pot on the next round, one receives slightly less than if one had taken the pot on this round, but after an additional switch the potential payoff will be higher. Therefore, although at each round a player has an incentive to take the pot, it would be better for them to wait. Although the traditional centipede game had a limit of 100 rounds (hence the name), any game with this structure but a different number of rounds is also called a centipede game. The unique subgame perfect equilibrium (and every Nash equilibrium) of these games results in the first player taking the pot on the first round of the game; however, i ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Game Theory
Game theory is the study of mathematical models of strategic interactions. It has applications in many fields of social science, and is used extensively in economics, logic, systems science and computer science. Initially, game theory addressed two-person zero-sum games, in which a participant's gains or losses are exactly balanced by the losses and gains of the other participant. In the 1950s, it was extended to the study of non zero-sum games, and was eventually applied to a wide range of Human behavior, behavioral relations. It is now an umbrella term for the science of rational Decision-making, decision making in humans, animals, and computers. Modern game theory began with the idea of mixed-strategy equilibria in two-person zero-sum games and its proof by John von Neumann. Von Neumann's original proof used the Brouwer fixed-point theorem on continuous mappings into compact convex sets, which became a standard method in game theory and mathematical economics. His paper was f ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Social Value Orientations
In Social psychology (psychology), social psychology, social value orientation (SVO) is a person's preference about how to allocate resources (e.g. money) between the self and another person. SVO corresponds to how much weight a person attaches to the welfare of others in relation to the own. Since people are assumed to vary in the weight they attach to other peoples' outcomes in relation to their own, SVO is an Differential psychology, individual difference variable. The general concept underlying SVO has become widely studied in a variety of different scientific disciplines, such as economics, sociology, and biology under a multitude of different names (e.g. ''social preferences'', ''other-regarding preferences'', ''welfare tradeoff ratios'', ''social motives'', etc.). Historical background The SVO construct has its history in the study of interdependent decision making, i.e. strategic interactions between two or more people. The advent of Game theory in the 1940s provided a formal ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
American Economic Review
The ''American Economic Review'' is a monthly peer-reviewed academic journal first published by the American Economic Association in 1911. The current editor-in-chief is Erzo FP Luttmer, a professor of economics at Dartmouth College. The journal is based in Pittsburgh. It is one of the " top five" journals in economics. In 2004, the ''American Economic Review'' began requiring "data and code sufficient to permit replication" of a paper's results, which is then posted on the journal's website. Exceptions are made for proprietary data. Until 2017, the May issue of the ''American Economic Review'', titled the ''Papers and Proceedings'' issue, featured the papers presented at the American Economic Association's annual meeting that January. After being selected for presentation, the papers in the ''Papers and Proceedings'' issue did not undergo a formal process of peer review. Starting in 2018, papers presented at the annual meetings have been published in a separate journal, '' AEA Pap ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Unexpected Hanging Paradox
The unexpected hanging paradox or surprise test paradox is a paradox about a person's expectations about the timing of a future event which they are told will occur at an unexpected time. The paradox is variously applied to a prisoner's hanging or a surprise school test. It was first introduced to the public in Martin Gardner's Martin Gardner#Mathematical Games column, March 1963 Mathematical Games column in ''Scientific American'' magazine. There is no consensus on its precise nature and consequently a canonical resolution has not been agreed on. Logical analyses focus on "truth values", for example by identifying it as paradox of self-reference. Epistemological studies of the paradox instead focus on issues relating to ''knowledge''; for example, one interpretation reduces it to Moore's paradox. Some regard it as a "significant problem" for philosophy. Description The paradox has been described as follows: Other versions of the paradox replace the death sentence with a surp ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Traveler's Dilemma
In game theory, the traveler's dilemma (sometimes abbreviated TD) is a non-zero-sum game in which each player proposes a payoff. The lower of the two proposals wins; the lowball player receives the lowball payoff plus a small bonus, and the highball player receives the same lowball payoff, minus a small penalty. Surprisingly, the Nash equilibrium is for both players to aggressively lowball. The traveler's dilemma is notable in that naive play appears to outperform the Nash equilibrium; this apparent paradox also appears in the centipede game and the finitely-iterated prisoner's dilemma. Formulation The original game scenario was formulated in 1994 by Kaushik Basu and goes as follows: "An airline loses two suitcases belonging to two different travelers. Both suitcases happen to be identical and contain identical antiques. An airline manager tasked to settle the claims of both travelers explains that the airline is liable for a maximum of $100 per suitcase—he is unable to find o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Experimental Economics
Experimental economics is the application of experimental methods to study economic questions. Data collected in experiments are used to estimate effect size, test the validity of economic theories, and illuminate market mechanisms. Economic experiments usually use cash to motivate subjects, in order to mimic real-world incentives. Experiments are used to help understand how and why markets and other exchange systems function as they do. Experimental economics have also expanded to understand institutions and the law (experimental law and economics). A fundamental aspect of the subject is design of experiments. Experiments may be conducted in the field or in laboratory settings, whether of individual or group behavior. Variants of the subject outside such formal confines include natural and quasi-natural experiments. Experimental topics One can loosely classify economic experiments using the following topics: * Markets * Games * Evolutionary game theory * Decision making * Bar ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Backward Induction
Backward induction is the process of determining a sequence of optimal choices by reasoning from the endpoint of a problem or situation back to its beginning using individual events or actions. Backward induction involves examining the final point in a series of decisions and identifying the optimal process or action required to arrive at that point. This process continues backward until the best action for every possible point along the sequence is determined. Backward induction was first utilized in 1875 by Arthur Cayley, who discovered the method while attempting to solve the secretary problem. In dynamic programming, a method of mathematical optimization, backward induction is used for solving the Bellman equation. In the related fields of automated planning and scheduling and automated theorem proving, the method is called backward search or backward chaining. In chess, it is called retrograde analysis. In game theory, a variant of backward induction is used to compute subgame ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Prisoner's Dilemma
The prisoner's dilemma is a game theory thought experiment involving two rational agents, each of whom can either cooperate for mutual benefit or betray their partner ("defect") for individual gain. The dilemma arises from the fact that while defecting is rational for each agent, cooperation yields a higher payoff for each. The puzzle was designed by Merrill Flood and Melvin Dresher in 1950 during their work at the RAND Corporation. They invited economist Armen Alchian and mathematician John Williams to play a hundred rounds of the game, observing that Alchian and Williams often chose to cooperate. When asked about the results, John_Forbes_Nash_Jr., John Nash remarked that rational behavior in the Prisoner's dilemma#The_iterated_prisoner's_dilemma, iterated version of the game can differ from that in a single-round version. This insight anticipated a Folk_theorem_(game_theory), key result in game theory: cooperation can emerge in repeated interactions, even in situations where it i ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Action Bias
Action bias is the psychological phenomenon where people tend to favor action over inaction, even when there is no indication that doing so would point towards a better result. It is an automatic response, similar to a reflex or an impulse and is not based on rational thinking. One of the first appearances of the term "action bias" in scientific journals was in a 2000 paper by Patt and Zechenhauser titled "Action Bias and Environmental Decisions", where its relevance in politics was expounded. Overview People tend to have a preference for well-justified actions. The term “action bias” refers to the subset of such voluntary actions that one takes even when there is no explicitly good reason to do so. In the case of a decision with both positive and negative outcomes, action will be taken in favor of achieving an apparent advantageous final result, which is preferred over inactivity. If besides gains, losses occur or resources are redistributed adversely, this will be neglect ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Grandmaster (chess)
Grandmaster (GM) is a Chess title, title awarded to chess players by the world chess organization FIDE. Apart from World Chess Championship, World Champion, Grandmaster is the highest title a chess player can attain. Once achieved, the title is held for life, though exceptionally the title can be revoked for Cheating in chess, cheating. The title of Grandmaster, along with the lesser FIDE titles of FIDE titles#International Master (IM), International Master (IM), FIDE titles#FIDE Master (FM), FIDE Master (FM), and FIDE titles#Candidate Master (CM), Candidate Master (CM), is open to all players regardless of gender. The great majority of grandmasters are men, but 42 women have been awarded the GM title as of 2024, out of a total of about 2000 grandmasters. There is also a FIDE titles#Woman Grandmaster (WGM), Woman Grandmaster title with lower requirements awarded only to women. There are also Grandmaster titles for composers and solvers of chess problems, awarded by the World Federa ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Elo Rating System
The Elo rating system is a method for calculating the relative skill levels of players in zero-sum games such as chess or esports. It is named after its creator Arpad Elo, a Hungarian-American chess master and physics professor. The Elo system was invented as an improved Chess rating system, chess-rating system over the previously used Harkness rating system, Harkness system, but is also used as a rating system in association football, association football (soccer), American football, baseball, basketball, pool (cue sports), pool, various board games and esports, and, more recently, Large language model, large language models. The difference in the ratings between two players serves as a predictor of the outcome of a match. Two players with equal ratings who play against each other are expected to score an equal number of wins. A player whose rating is 100 points greater than their opponent's is expected to score 64%; if the difference is 200 points, then the expected score for th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
