Chapter 11: Game Theory of Mind Flashcards
1
Q
“The Prisoner’s Dilemma & Tragedy of Commons”
- Which strategy is used?
- Does it have high or low price of anarchy?
A
- Strategy: “dominant strategy”
- High price of anarchy
2
Q
Examples of “The Prisoner’s Dilemma & Tragedy of Commons” in real life?
A
- shopkeepers open their stores full time for competition
- vacation policy: everyone tries to work more than average => takes no vacation
- fossil fuel: countries try to exploit as much as they can for profit
3
Q
Definition of “the price of anarchy”?
What is “cooperation” and “coordination”?
A
the gap between cooperation and competition
- cooperation: a centrally designed or coordinated solution
- competition: Where each participant is independently trying to maximize the outcome for themselves
4
Q
How much is the price of anarchy for “selfish routing”? Is that low or high?
A
- price of anarchy (proved in 2002 by Roughgarden and Tardo): 4/3 => 33% worse than perfect top-down coordination => low
5
Q
What is the other name of “mechanism design”?
A
“reverse game theory”
6
Q
What does “mechanism design” try to figure out?
A
what rules will give us the behaviours we want to see?
7
Q
How does “mechanism design” work?
A
worsening the unsatisfactory equilibrium => reducing the number of options that people have
