D2 chapter 5 - game theory

In this chapter you will learn what is meant by game theory and you will learn to find optimal strategies for certain simple games.


D2 section 5.1

You are introduced to the idea of a two-person game and pay-off matrices.
Examples: the prisoners' dilemma problem:
A variant on this problem is found in the spilt or steal choice at the end of the gameshow 'Golden Balls.' A particularly good example of this is shown in the clip below:

Thanks to John McQuaid for spotting this on Ben Goldacre's blog
It's not just money this applies to. In this clip for the film 'A Beautiful Mind' the moment John Nash invents game theory is dramatised in four college-boys' competition for the attention of women in a bar:

D2 Exercise 5A

  • D2 Exercise 5A worked solutions:
  • Questions similar to this exercise:

D2 section 5.2