A clip from the 1946 film It's A Wonderful Life.
What causes bank runs?
Friday, November 5, 2010
Game theory: Prisoner's Dilemma
The Prisoners Dilemma shows that, in certain circumstances, if the members of a group trust each other, they can choose a course of action that will bring them the best possible outcome for the group as a whole. But without trust each individual will aim for his or her best personal outcome - which can lead to the worst possible outcome for all.
Game Theory : the Truel
The Good, the Bad & the Ugly Finale
They each get a gun and take turns shooting at each other until only one person is left.
If you are relatively a bad shot, where should you shoot first for the highest chance of survival?
Split Or Steal?
After five balls have been won, the contestants have to choose one last decision to make over the final jackpot total. They are each presented with two final golden balls. One has "Split" printed inside it and the other has "Steal" printed inside it.
>>If both contestants choose the Split ball, the jackpot is split equally between them.
>>If one contestant chooses the Split ball and the other chooses the Steal ball, the Stealer gets all the money and the Splitter leaves empty-handed.
>>If both contestants choose the Steal ball, they both leave empty-handed.
In the video, we have Sarah and Steven.
Steve promised to split, but Sarah chose to steal.
Why did she choose steal rather than collaborate with Steve and share the $100,000?
Was she right?
Was Steve totally wrong to choose split?
What would you have done in his situation?
Both players sit face to face, and can talk to each other, and agree on a strategy.
However, Sarah betrayed him.
Steve and Sarah relate to the choices faced by firms in oligopolitic markets, and collusive agreements between oligopolists often fall apart.
Can you explain why?
>>If both contestants choose the Split ball, the jackpot is split equally between them.
>>If one contestant chooses the Split ball and the other chooses the Steal ball, the Stealer gets all the money and the Splitter leaves empty-handed.
>>If both contestants choose the Steal ball, they both leave empty-handed.
In the video, we have Sarah and Steven.
Steve promised to split, but Sarah chose to steal.
Why did she choose steal rather than collaborate with Steve and share the $100,000?
Was she right?
Was Steve totally wrong to choose split?
What would you have done in his situation?
Both players sit face to face, and can talk to each other, and agree on a strategy.
However, Sarah betrayed him.
Steve and Sarah relate to the choices faced by firms in oligopolitic markets, and collusive agreements between oligopolists often fall apart.
Can you explain why?
Ultimatum game
You're standing on the sidewalk with a friend, minding your own business, when a man approaches with a proposition. He offers you $20 in one-dollar bills and says you can keep the money, under one condition: You have to share some of it with your friend. You can offer your friend as much or as little as you like, but if your friend rejects your offer, neither of you get to keep any of the money. What do you do?
"Ultimatum game" from the TV show Num3ers:
Another "Fair" Division Problem
"You cut, I choose" is a fair method, but what went wrong in the video?
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