Prisoners Dilemma Examples: Oligopoly, Carbon Emission & Dating
This video describes the two characteristics of a prisoner's dilemma and goes over three examples of Prisoner's dilemmas:
1) Oligopoly firms deciding whether to set the price high or low
2) Friends hanging out deciding whether to treat an excursion to the movies like a date or like it's just friends
3) Countries trying to decide whether to reduce carbon emissions or not
0:00 - Overview
1:05 - Traits of a Prisoner's Dilemma / Oligopoly Pricing
5:52 - Dating or Friends?
7:54 - Reduce Carbon Emissions?
Пікірлер: 51
More than 6 hours of lessons + a book with 100 pages + various videos + sample questions = I did not understand anything. I watched your two videos and boom!!!The whole mystery was solved. Thank you. You are a star!
If she could explain plain and clear like this, why do lecturers find it difficult to do the same? Is there a secret those lecturers are keeping from us or don't they just want students to understand these things? Ashley, you're saving many that you don't know. Don't be surprised if we start acknowledging you in our papers. Thanks a million!
@Michael-go9hm
Жыл бұрын
yes i know exactly what u mean those are all sore losers
@thearianrobben
Жыл бұрын
If lectures so clear nobody would pay 100ks in undergrad degrees
As always, incredibly well explained👏👏 Thanks!!
Thank you for these videos, you explain the concepts so well!
It's really great explanation. Thank you soo much ! You are the best game theory teacher I have ever seen 😎❤️
These are so helpful!! Thank you!!!!!
That really helped me understand this matter! Thanks :)
So comprehensively explained! Love those fun examples. I really wish u r my econ teacher~
Good explanation examples. I didn't get the two prisoners' example either. thank you
Amazing video!
THE BEST VIDEO FOR EXPLAINATION OF PD
We love you keep up the good work
Thank you so much ❣️
does it always have to be a 2x2? what if there are more than 2 options per player. thanks for the video, keep up to good work.
Having dominant strategies for each is always problematic as they miss choosing the high utility strategy by reaching Nash equilibrium, I don’t think it’s wise.
Thank youuuuu
why would the person dating prefer to defect and get a higher payoff by acting like they're just friends? This example makes less sense to me than the others
Is 8,8 also a nash equilibrium
Another great explanation, thank you sooo much 🙂🙂. Is the "dominated strategy" (8;8) the same thing being called Pareto balance? Plus another question connencted to this: would this (8;8) be the so to say "cooperative" strategy? And a 3.question 🤦🏻♀️😀: is the (12;0) and (0;12) the ones called dominant strategies?
@thunday8477
2 жыл бұрын
So Im not an expert on this and am also quite late. Furthermore, I dont know what a Pareto balance is, but what got from this video is that each of those squares isnt the strategy but the result. Meaning 8,8 is the result if both chose their cooperative strategy. 12,0 and 0,12 are the results if only one party chose the cooperative strategy while the other chose their dominant strategy. The dominant strategy is the action that always produces an at least okay result no matter what the other partys choose. The dominated strategy produces the best result if all partys choose their dominated strategy as well, however choosing the dominated strategy while the other chooses their dominant strategy is bad for you. Also, choosing the dominant strategy when the other party chooses the dominated strategy gives you better results. Thats why 8,8 is so unstable
The issue is when you have multiple interactions. The best strategy then is cooperate first trial. Next trial do whatever your partner did last time, i.e., cooperate only if they cooperated last time, etc.
Hi Ashley, When people talk about modelling in economics do they refer to econometrics?
@AshleyHodgson
Жыл бұрын
Modelling can refer to either theoretical economics (microeconomic theory like I do) or empirical models (econometrics).
it really is every where in our lives..
Beautifully explained
Hello, great video like always, but I had a few questions. If the game is repeated, can the players achieve a better outcome? like does it change the game? also, is there also a real life example for that? because it seems that there was a situation where firms colluded on prices (is it just because, they could still talk and respect some external rule?) thank you in advance
@AshleyHodgson
3 жыл бұрын
Yes, you can definitely achieve a better outcome when games are repeated! I should do a video on that one of these days. Good suggestion!
@danieljones5519
2 жыл бұрын
I'll give you an anecdote using Ashley's example, Dating or Friends! I had seen her around a few times. Our social spheres intersected with euchre or trivia. I nervously asked her to lunch and she said yes. We sat down to order with an invisible cloud of awkwardness... Conversation began to clear the air but I still didn't know how best to approach it. At this point, I'm running 0 she's has 12. The she said it - "I'm seeing someone else". The game just started anew. I now know her approach so I can mitigate the "damage" and agree the Nash Equilibrium - 4 to 4. Better outcome. :)
If you can make more videos about Health economics that would be great
Since all games do not have a dominant strategy for each player. What would be an optimal strategy for each player in the absence of dominant strategy?
@AshleyHodgson
3 жыл бұрын
Check out Nash equilibrium videos. Of course, I try to avoid the language of "optimal" strategy, except when there is a dominant strategy, because in the real world Nash equilibrium assumes a certain type of thinking on the part of your opponent, and there are other styles of thinking about these problems (minimax, for example).
@SB-vw1wb
3 жыл бұрын
@@AshleyHodgson @Ashley Hodgson I watched your recommended videos. You mean to say that Nash equilibrium will exist in the absence of a dominant strategy given the fact that each player must be aware of opponent's 'best' strategy. Whereas there might be a possibility of Nash equilibrium when players are having dominant strategy. Am I correct?
I have a different intuition about the payoffs in the dating example. If both players consider dating (each other) better than both being single, why would the highest payoff be a state in which they are both single? It seems like schadenfreude was worth at least 4 points more than dating for each player.
@kamerynclous1657
Жыл бұрын
dude its just an example the context doesn't matter as much as how the matrix works
Is it a necessary condition for the player to be in the same type of role for them to play the prisoner's dilemma? The examples so far are two thief, a couple dating, two companies in the same type of business...I guess my question is: can the players be, for example, a buyer and a seller, a police officer and a criminal, a father who does not want his daughter to date x guy and the x guy...?
@AshleyHodgson
3 жыл бұрын
They do not need to be in the same type of role to be in a prisoner's dilemma.
@edwardgonzalez6331
3 жыл бұрын
@@AshleyHodgson Thank you for that answer. I guess I just don't know how to set it up. The classic example, the two thief have the same options:to confess or to stay silent, the dating couple in your video have also the same options:to make the move or act if it is just friendship. So, if the players are playing different roles in the game, then there should different options. So if they have different options, I just don't know how to set up the payoffs so that it shows that they are in the prisoner's dilemma.
@shreyassudhaman986
3 жыл бұрын
@@AshleyHodgson More specifically, does the matrix have to be symmetric for it to be considered a prisoners dilemma?
This is cool.asf
Ashley ..look at me ..
Prettiest teacher with the Prettiest explanation
Najak Le Ya
I am still not clear about prisoner,s dilemma
@Ashley Hodgson you look nice.
so it sounds like you're saying that the west shouldn't reduce emissions because china and india aren't reducing theirs.......