this is called a paradox because of the fact that choosing defect would score them with greater benefit, but it contradicts itsself by prooving that helping others is always the best way to live your life, and serves as proof that sociopathic ideals built to take what you can get out of a person are inherently both bad and ineffective, while always choosing to help eachother will not only result in the guaranteed benefit of both parties but also the net greatest amount of points allotted to the whole community, i find this concept to not only be helpful for buisness and economy, but also with relationships and serves as a good lesson to live your life by under any citizen's circumstances.
You’re totally right! I highly recommend this podcast freakonomics.com/podcast/robert-axelrod-on-why-being-nice-forgiving-and-provokable-are-the-best-strategies-for-life/ All the best!
Thank you so much, you're a life-saver. They didn't go over this or the 2nd degree price discrimination during my course properly, your videos saved me so much trouble.
Thank you so much for this. I have been finding this sort of explanation for days. thank you..thank you so so much. it was explained it great detail and much length
hello, i need to make a paper about the price war between coca-cola and PepsiCo and also used a repeated game prisoners dillema, but i dont understand how a decision tree will look like in the infinite repeater game ? could you help me with this
Thank you so much. In finite game suppose players are playing for two times in that case do they defect or cheat (in prisoner's dilemma) in both the periods ?
Good job @Iris Franz--Please I want to understand why you multiplied the utilities eg 12 by delta in the first place. I get the proof but want to know the intuition behind multiplying it by the figures.
Delta is between 0 and 1. You multiply a payoff NEXT PERIOD by delta to show how much that payoff is worth to you TODAY. Say, if a payoff of $12 next period is equivalent to $6 today, then your delta is 0.5. The less patient you are, the smaller your delta. That's why we call delta " the discount rate" -- we discount a payoff that will happen tomorrow, because we are impatient.
I just have a small question with the latter part of your video concerning the derivation of x=a/1-f (f being delta); when you take x - fx, don't you get = a - the last term of fx? For instance say we have x= a + af + af^2 (only uptil power 2). Then if we take x - fx, you would get = a - af^3. Could you please explain this!
When the prisoners dilemma is finitely repeated, use backward induction. The last round’s equilibrium is (D, D). So as the previous round, and so on... . Therefore, the solution is (D, D) in each and every round.
@@IrisFranz i know that in the Finitely repeated game one of our Nash equilibrium remains equilibrium in the let say 10th period of the game. And in this game (D,D) will be the one.. I am having exam in few days. I m just didn't get how I need to solve it. Bcz in the exam even if I use backwards induction it's time consuming process to follow it till very first period of the game.. as i just can't write down the theory.. i thought there would be some sort of way or formula to show our solutions. Thank you so much.
![บังเอิญมันได้อ่ะ - แอน อรดี [OFFICIAL MV]](http://i.ytimg.com/vi/9fwjammKY4A/mqdefault.jpg)
Thank you so much for simplifying this in such a wonderful way. Big university professors couldn't accomplish what this video of yours has!
Thanks! Glad it was helpful.
this is called a paradox because of the fact that choosing defect would score them with greater benefit, but it contradicts itsself by prooving that helping others is always the best way to live your life, and serves as proof that sociopathic ideals built to take what you can get out of a person are inherently both bad and ineffective, while always choosing to help eachother will not only result in the guaranteed benefit of both parties but also the net greatest amount of points allotted to the whole community, i find this concept to not only be helpful for buisness and economy, but also with relationships and serves as a good lesson to live your life by under any citizen's circumstances.
You’re totally right! I highly recommend this podcast
freakonomics.com/podcast/robert-axelrod-on-why-being-nice-forgiving-and-provokable-are-the-best-strategies-for-life/
All the best!
Thank you so much, you're a life-saver. They didn't go over this or the 2nd degree price discrimination during my course properly, your videos saved me so much trouble.
That was so simply explained. Thank you!!!
This was excellent! I struggled with this concept for a while, but I get it now. Thank you!
Robert Wales glad to help!
literally watch you for years so so so helpful, and it makes me clueless when there are topics agar iris doesn't explain
Glad to help!
You teach so well!
Bravo!
This video was so well and simply explained! Thanks Iris
Glad it was helpful!
I have to say you explain it much better than my professor in the uni! Thanks a lot for your videao to help me struggle with my final exam lol!
Very clear and precise. Good job. Thanks
2 days of research in 6 minutes! Well done, thank you!
You’re welcome!
Great work Iris! keep up the great work!
Thank you so much for this. I have been finding this sort of explanation for days. thank you..thank you so so much. it was explained it great detail and much length
You’re welcome! Glad that you find it helpful. Best wishes.
Excellent explanation!
You are simply brilliant and so articulate.
Thank you. Happy learning!
😍😍😍😍🤩🤩😍😍😘😘😘😘😘 Thank you for the Lucid Explanation Ms Franz
Glad to help. Happy learning!
huge thanks for your help !!
I like the part were you explained the a/(1-delta) part
that was cool
Glad to hear!
Very simply explained. Thank you.
Glad it was helpful! Please share with those who find economics challenging.
You are an awesome teacher.. Thank you.. 🤗
Thanks and happy learning!
That's really helpful mam.
Thank you 🌈
Please share the selfish and altruistic social behaviour prisoner's dilemma as well.
hello, i need to make a paper about the price war between coca-cola and PepsiCo and also used a repeated game prisoners dillema, but i dont understand how a decision tree will look like in the infinite repeater game ? could you help me with this
Thank you so much. In finite game suppose players are playing for two times in that case do they defect or cheat (in prisoner's dilemma) in both the periods ?
Yup. Use backward induction.
🙏 big respect
Good job @Iris Franz--Please I want to understand why you multiplied the utilities eg 12 by delta in the first place. I get the proof but want to know the intuition behind multiplying it by the figures.
Delta is between 0 and 1. You multiply a payoff NEXT PERIOD by delta to show how much that payoff is worth to you TODAY. Say, if a payoff of $12 next period is equivalent to $6 today, then your delta is 0.5. The less patient you are, the smaller your delta. That's why we call delta " the discount rate" -- we discount a payoff that will happen tomorrow, because we are impatient.
@@IrisFranz Thank you so much
Good video thx!!!
I just have a small question with the latter part of your video concerning the derivation of x=a/1-f (f being delta); when you take x - fx, don't you get = a - the last term of fx? For instance say we have x= a + af + af^2 (only uptil power 2). Then if we take x - fx, you would get = a - af^3. Could you please explain this!
The last term would be close to zero and you can ignore it. Best luck 🍀
@@IrisFranz thank you so much!
thankyou so much, it helps me a lot for upcoming exams
You're welcome. Happy learning!
You should add subtitles as well
great video
Thanks!
很好理解 謝謝
Thank you so much! I am having a homework that is exactly about this problem!
You are welcome!
Thank you so much!
I think you should call delta the discount factor and not the rate.
Noted; thanks!
Thank you
glad to help!
Interesting! And I'm not even a mathematician!
Glad that you find economics fun!
Thanks a lot for an absolutely amazing explanation!
Glad it was helpful!
How do I know that example infinte or finite????
Typically the question will indicate whether the game is finitely repeated or infinitely repeated. Best luck!
this was really helpful thanks
Glad to help. Happy learning!
Hey i want a numerical solution of Finitely repeated game.can you make a video on it's solutions ?
When the prisoners dilemma is finitely repeated, use backward induction. The last round’s equilibrium is (D, D). So as the previous round, and so on... . Therefore, the solution is (D, D) in each and every round.
@@IrisFranz i know that in the Finitely repeated game one of our Nash equilibrium remains equilibrium in the let say 10th period of the game. And in this game (D,D) will be the one.. I am having exam in few days. I m just didn't get how I need to solve it. Bcz in the exam even if I use backwards induction it's time consuming process to follow it till very first period of the game.. as i just can't write down the theory.. i thought there would be some sort of way or formula to show our solutions. Thank you so much.