2. Games Solvable by Backwards Reasoning Flashcards
What is the essence of games of strategy?
The interdependence of the players’ decisions
What is a sequential game?
A game that unfolds over time
What is a simultaneous game?
A game in which the players take actions without knowing the other players’ actions
What is the backwards reasoning principle?
To look forward, you must reason backwards
What is the nature of a “game” in game theory?
It is a theoretical abstraction
What is the paradox of choice?
More choices can be bad, as those options may influences other players’ actions in an undesirable way
What must be true of solvable games?
The must not be at all uncertain
What is the role of psychology in game theory?
A better understanding of people’s motives allows us to make better strategic decisions, and the game must be reasoned from the other players’ perspectives
What is the role of experience in game theory?
It must be combined with backwards reasoning in very complex games, especially to evaluate intermediate positions
How must risk be addressed in a game?
If you have to take a risk, it is better to take it early on
