Game Theory 101: Simultaneous Games
Includes the Rock Paper Scissors Example from The Big Bang Theory
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Today we go through some background definitions of game theory and examine Rock Paper Scissors, with a special clip from The Big Bang Theory where Sheldon and Raj play a special variation of the game.
Some of what we cover in the video:
Strategic Games vs. Games of Chance: The distinction between strategic games and pure games of chance, like slot machines, is highlighted. Strategic games involve players' decisions impacting each other's outcomes, while chance games rely on randomness.
Rationality and Payoffs: The assumption of rationality among players is explained. In games, decisions lead to outcomes and corresponding payoffs, which may be uncertain. Expected payoffs are used to assess situations with uncertainty.
Contingencies and Sequential Games: Contingencies, or events that may or may not occur, are discussed in relation to sequential games. Players must consider future opponent actions when making decisions, which is essential in analyzing sequential games.
Simultaneous vs. Sequential Games: The distinction between simultaneous and sequential games is outlined. Simultaneous games involve simultaneous decisions without knowledge of opponents' choices, while sequential games involve ordered actions with awareness of previous moves. The video covers fundamental concepts in Game Theory, including rational decision-making, payoffs, contingencies, and different types of games (simultaneous and sequential). It also provides insights into how these concepts apply in analyzing various scenarios.
Rock Paper Scissors: We spend a lot of time setting up Rock Paper Scissors - including how to take the content from the game and put it into a payoff matrix.
Check out the video, which contains the famous Rock-Paper-Scissors-Lizard-Spock game: