Nash Equilibrium – A state in which no two opposing sides
can get ahead of the other without the other being shorted. This applies as
long as neither side changes their strategy.
Game Theory – the application of mathematics to peoples
strategies when faced with games or analytical tasks. The results depend on the
participants choices.
Prisoner’s Dilemma – Two players, each having two or more
options. The outcome relies on what both players decide
Serendip – I used the Nash equilibrium, I knew the computer
was going to cooperate on the first move. So I, in turn cooperated and we both
gained 3 coins. I took the safe route and decided to compete in the second
round which paid off because I received 5 coins putting me in the lead at 8.
The computer program and I both went the safe route from here on out both
choosing to compete and receiving 1 coin the rest of the game.
Prisoners dilemma in history definitely played out in the
revolutionary war. Generals and leaders had to decide how many soldiers and
units they would send forward to defeat the enemy yet lose the least amount of
troops themselves. In government politicians must pretend to get along with
other candidates while not making the other candidate look better. In economics
people must decide the lowest price to sell a product at so that people want to
buy their product over a competitors but they still need to make money on it.
In my life I face prisoners dilemma when I do trades at the guitar store I want
to get something of equal or greater value than what I am trading in but the
opposing trader wants to give me something of equal or lesser value.
I thought our oil pricing project was rather interesting. I
think if we hadn’t done the project the day before it would have been better. We
wouldn’t have had the experience or known the pattern to use to be safe.
