A Brief Introduction to the Basics of Game Theory

(papers.ssrn.com)

43 points | by 7777777phil 2 days ago

2 comments

  • bob1029 2 hours ago
    I think a basic overview of game theory should also discuss Pareto optimality to some extent. You can have 100% of participants operating in a locally-ideal way while still creating problems in aggregate.
    • SaltyBackendGuy 1 hour ago
      Tragedy of the commons / bounded rationality for example.

      https://en.wikipedia.org/wiki/Tragedy_of_the_commons

    • perfect-blue 55 minutes ago
      Pareto efficiency is a welfare economics concept. In game theory, the closest you can get to that is a Nash equilibrium.
      • emil-lp 53 minutes ago
        Pareto optimal is definitely a core concept in game theory. It says that no other vector beats it in every dimension (or at least as good in all but one, and better in at least one).
  • Nifty3929 50 minutes ago
    Why Flip a Coin is a really great book about game theory. Easy to read, very little assumed knowledge, and lots of very interesting and counterintuitive examples and situations. Also, despite the introductory nature - still gets into the math in a rigorous way.