Mike’s choice is conditional on what Don does. So the best response to don playing ‘down’ is for mike to play ‘down’, and get 7 rather than 6. Down is also a best response to Don playing ‘up’ since 8 is larger than 5. There is never an option of Mike choosing between an outcome where they get 7 and one where they get 8 since this depends on whether Don chooses up or down- this is not Mike’s choice to make. Does that help?
@@d.pereira2076 Yes! Here's one video that addresses some things, hopefully I will get to the other tipics soon: th-cam.com/video/KEf0Oge8ZzM/w-d-xo.html
EDIT: I had a question about this that I'll reply to in this comment. Above, when I say Mike's choice is "conditional" on what Dan's does I don't mean to say that this is a sequential game. My wording wasn't great here. A better wording would be if I said "Mike's outcome (payoff) is conditional on what Don does". I think that's at the heart of the original issue. Additionally, when we consider best responses, we do think about conditional scenarios (if P1 does X then P2 will .... ) when we think about what a player will do, but this should not be thought of in terms of a sequential structure in the game, it's just representing the logic of the decision makers in the game.
Hello! I’m so sorry but I can’t quite understand the request. Do you want me to do a video on introductory game theory? I did do this one that covers introductory topics: th-cam.com/video/3EOlRF7EjKU/w-d-xo.htmlsi=7YyJVfNMglVS1wu8. Let me know if this is what you were after!
hello, very sorry about the late reply, I had thought I answered this one. At {price high; price high} both players have an incentive to change their behaviour. At that point, either could price low and they would end up getting 40 instead of 20. Does that help?
It depends! If you were considering firms as players you could use profit and assume that’s all they care about (a common assumption). For individuals you could ask how much a person would pay for an outcome, and this would give you a valuation- basically pretend everything is for purchase and nothing is for free. For instance, I would pay $50 for the rights to go for a walk, and $100 for access to the beach. Importantly, this shows that I value the beach more than the walk. With game theory the only thing that matters is how players rank different outcomes, rather than the value of the number per se, so understanding that order of preference is what we need. Does that help?
Btw, do you have any notes or recommendations on macro economics books that are easy to understand because I will be taking it for the next semester ? thank you very much. You have saved my future. hahaha
Hi Shamira, Macro is hard because I think the curriculum differs depending on where you are, so for example, Australian curriculum is a little different to the US. Given this, I strongly suggest that you concentrate on the text given by your lecturers (a good piece of advice in any case). Apart from this, I think Karlan and Morduch are pretty good. Hope that helps! :) Good Luck!!
@@econhelp_official thanks for replying and I think I should opt for your advice by concentrating on the notes given by my lecturers cause economics is a minor subject for my course. That's why I been having a hard time understanding it. I am more into finance and banking. 😆😃
Hi, did you check out the other video, it outlines the concepts in detail? th-cam.com/video/3EOlRF7EjKU/w-d-xo.html , perhaps it would be good if you google for some practice questions, I'll try to put up a couple of shorts tonight that go through some examples, if I can put my baby to sleep in time! :) Good luck
I have watched atleast 10 videos before. But finally your video was the one which helped by finally understand it. Thank you so much.
I'm so glad! Thanks so much for the comment!!
I love you. Finally I understand this for the assignment. Thank you so so much!
Aw that's so nice! I'm so happy the video helped. Thanks for the comment, good luck with your assignment!!
Such a life saver. You helped me understand this right before my quiz on game theory
Oh wow! Good luck, I'm so glad I don't have to do quizzes anymore haha. Hope you did well :)
+
this is a great video!! Thank you so much, you have saved me from failing my exam
:)
I'm so glad! Failing is the worst! I've failed before and I can tell you if you ever do fail, what matters is that you get back up :)
@@econhelp_official thank you for responding!! I have recommended your channel to everyone ☺️
Thank you so muchhh!! All the books have let me down.
You're so welcome! Good luck with your study :) :)
Thanks so much. This was very helpful
You're very welcome!n Thanks for the comment!
Thank you so much you made this so easy to understand. its beter than how i was taught. this is 25% of my exam
Yay! Good luck with your exam!!!! Thanks for the comment 😀
Thanks for helping me to understand game theory
No problem! Glad you liked it!
the best video about this topic, thanks
Glad it was helpful! Thankyou so much for the comment!
I am French and I had to find a video in English to finally understand, thank you
Aww that's so nice thankyou. I'm really glad the video helped :)
I don't agree with the first example, why would Mike settle for 7 when he can have 8?
Mike’s choice is conditional on what Don does. So the best response to don playing ‘down’ is for mike to play ‘down’, and get 7 rather than 6. Down is also a best response to Don playing ‘up’ since 8 is larger than 5. There is never an option of Mike choosing between an outcome where they get 7 and one where they get 8 since this depends on whether Don chooses up or down- this is not Mike’s choice to make. Does that help?
@@econhelp_official Hi I love your videos. Thank you very much. Could you please do a video on prisoners dilemma of game theory?
@@d.pereira2076 Yes! Here's one video that addresses some things, hopefully I will get to the other tipics soon: th-cam.com/video/KEf0Oge8ZzM/w-d-xo.html
EDIT: I had a question about this that I'll reply to in this comment. Above, when I say Mike's choice is "conditional" on what Dan's does I don't mean to say that this is a sequential game. My wording wasn't great here. A better wording would be if I said "Mike's outcome (payoff) is conditional on what Don does". I think that's at the heart of the original issue. Additionally, when we consider best responses, we do think about conditional scenarios (if P1 does X then P2 will .... ) when we think about what a player will do, but this should not be thought of in terms of a sequential structure in the game, it's just representing the logic of the decision makers in the game.
Thanks for this video, i learnt a lot from it. But please can you solve a game theory without Nash Equilibrum.
Here you go! A Simultaneous Move game with no Nash equilibrium
th-cam.com/video/EsYvW-irGsE/w-d-xo.html
❤ Thank you very much!
You're welcome! Thanks so much for the comment! Hope your studies went well!
Please mma, can you pardon the introductory part of the game theory for because your voice is very clear.
Hello! I’m so sorry but I can’t quite understand the request. Do you want me to do a video on introductory game theory? I did do this one that covers introductory topics: th-cam.com/video/3EOlRF7EjKU/w-d-xo.htmlsi=7YyJVfNMglVS1wu8. Let me know if this is what you were after!
it was nice to get some practice! thank you god bless :)
You're so welcome! Good luck with your study!
thanks gang this is fire you legend
No you are! (thanks for the comment)
Why the (price high , price high ) not a NE ? Thank you for ur amazing video
hello, very sorry about the late reply, I had thought I answered this one. At {price high; price high} both players have an incentive to change their behaviour. At that point, either could price low and they would end up getting 40 instead of 20. Does that help?
best explintation ever...
Thanks, I'm glad you found it helpful!! Good luck with your course!
thank you
You're welcome! good luck with your studies!
It is interesting, I wonder when I apply this strategy into real life, how I know the number in different quaters?
It depends! If you were considering firms as players you could use profit and assume that’s all they care about (a common assumption). For individuals you could ask how much a person would pay for an outcome, and this would give you a valuation- basically pretend everything is for purchase and nothing is for free. For instance, I would pay $50 for the rights to go for a walk, and $100 for access to the beach. Importantly, this shows that I value the beach more than the walk. With game theory the only thing that matters is how players rank different outcomes, rather than the value of the number per se, so understanding that order of preference is what we need. Does that help?
@@econhelp_official thank you so much, it really help, I will try it out
Btw, do you have any notes or recommendations on macro economics books that are easy to understand because I will be taking it for the next semester ? thank you very much. You have saved my future. hahaha
Hi Shamira, Macro is hard because I think the curriculum differs depending on where you are, so for example, Australian curriculum is a little different to the US. Given this, I strongly suggest that you concentrate on the text given by your lecturers (a good piece of advice in any case). Apart from this, I think Karlan and Morduch are pretty good. Hope that helps! :) Good Luck!!
@@econhelp_official thanks for replying and I think I should opt for your advice by concentrating on the notes given by my lecturers cause economics is a minor subject for my course. That's why I been having a hard time understanding it. I am more into finance and banking. 😆😃
I am confused with the dominant for don
Don does not have a dominant strategy. His best response changes when Mike changes his action. Does that help?
I want a definite exercise I need it for my term paper and still have only 2 days, I also still cant grasp the whole material ,
Hi, did you check out the other video, it outlines the concepts in detail? th-cam.com/video/3EOlRF7EjKU/w-d-xo.html , perhaps it would be good if you google for some practice questions, I'll try to put up a couple of shorts tonight that go through some examples, if I can put my baby to sleep in time! :) Good luck
life saver
Good luck with your study!
thanks
Welcome! Thanks for the comment!
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