Game Theory and Strategic Thinking - chapter 9

Backward induction

________ is the process of analyzing a problem in reverse.

Prisoners dilemma

a game of strategy in which two people make rational choices that lead to a less-than-ideal result for both.

rules

Games have ________, which define the actions players are allowed to take.

Payoffs

the rewards that come from taking particular actions.

Game theory

the study of how people behave strategically under different circumstances.

game of patience

The ability to make counter-offers transforms bargaining from a game in which first-mover advantage trumps everything into a(n) ________.

Non-cooperation

________ is the best choice because its payoff is higher no matter what strategy other players choose.

Decision tree

A ________ can be used to determine the best course of action at each stage of the game.

Game

a situation involving at least two people that requires those involved to think strategically

Game theory

the study of how people behave strategically under different circumstances

behaving strategically

acting to achieve a goal by anticipating the interplay between your own and others decisions

Strategies

are plans of action that players can follow to achieve a desired goal

Payoffs

the rewards that come from taking particular actions

Dominant strategy

When a strategy is the best one to follow no matter what strategy other players choose