MAT 1374 Lecture Notes - Lecture 2: Sequential Game, Determinacy, Utility
15 Sep 2016
School
Department
Course
Professor
Document Summary
Look forward, reason backwards this is known as backward induction. A sucker bet is when you have a high chance of losing once your opponent accepts the bet. Ex: buying a second hand car or a marriage proposal (when you propose anything in life you need to consider the occurrences after they accept). Winners curse: you win in once sense but are still cursed as you lose money in the process, such as bidding too high. Here the mere fact that you won the auction tells you that you bet too much. Exceptions are when there is sentimental/priceless value, in which case the amount you spent may be reasonable for you. In the nimm game you have 21 flags and try to leave your opponent with 4, therefore also with 8. This isn"t fair as the first team determines the game as they have the winning strategy.
