GAME THEORY

A detailed Summary of GAME THEORY


One of the most famous and most thoroughly studied examples of game theory is the Prisoner's Dilemma. In this situation, the police have caught two people and charged them with a crime. The police separate the prisoners into different rooms and give them the option of confessing. The police tell the two prisoners that they have enough evidence of the crime to send them to jail for X amount of years. However, if one prisoner confesses fully to the crime and testifies against the other but the other doesn't, then the prisoner who confessed will get get a much lighter sentence than X and the prisoner who did not confess will get a heavier sentence than X. However, if both of the prisoners confess and testify against the other, then the police have enough evidence to convict both prisoners for a slightly heavier sentence than X. Since neither of these prisoners knows what the other one is saying, we can use a decision tree to determine the dominant strategy for these people. (see figure A on attached sheet) In this dilemma, the dominant game strategy for the prisoners is to confess.

Although the strategy for these games seems very predictable, there is a paradox that arises. The police are also a player in this game. T


he police have evidence to put these criminals away for only X years but if the prisoners confess, then they have enough evidence to put them away for slightly more than X years. In this situation, the police want to do all they can in their power to make these criminals confess to the crime. The actions by the authorities have to be included in the outcome of the game. The way the authorities can change the outcome of the game is to penalize the prisoners if they do not do what the authorities want. Therefore the only two actions that the authority can perform are to penalize or not penalize the prisoners. However, the dominant strategy of the authority and the impact of their actions are determined by two more stipulations.

This circumstance of including the police in the game seems easily predictable and gives us the impression that the authority does not affect the game significantly. However, if we change the nature of the police, the game is altered greatly. If the police have a non-benevolent attitude, then they are no longer concerned about the status of the prisoners, rather they are concerned about the well-being of the public. In this case, the police may impose a penalty on the prisoners even if they do confess because they will be a

Some common words found in the essay are:
Prisoner's Dilemma, , dominant strategy, prisoners confess, penalize prisoners, prisoners dominant, prisoners dominant strategy, prisoners prisoners, strategy prisoners confess, dominant strategy confessing, benevolent benefit gains, benevolent benefit, actions authority, strategy prisoners, police evidence, outcome game, benefit gains prisoners,

Approximate Word count = 851
Approximate Pages = 3 (250 words per page double spaced)

Category: Politics

join now Save Paper

Related Essays

  • Applications of Game Theory GAME THEORY One possible application of Game Theory is in advertising. Advertising ... This is the case where game theory is applicable. There ... 803 words
  • game thoery GAME THEORY One of the most famous and most thoroughly studied examples of game theory is the Prisoneramp39s Dilemma. In this situation ... 820 words
  • Nobel Peace Prize winners ... The three economists who was awarded the Noble Peace Prize in 1994 for their excellent work and progress in game theory was know as pioneers in using games ... 1356 words
  • A Beautiful Mind by Silvia Nasar: The Real Story of Schizophrenia While his illness does cause him significant problems, he is still able to achieve greatness via his game theory, to manage a longlasting relationship where ... 3069 words
  • The Economics of ampquotA Beautiful Mind The economist and mathematician John Nash received the Nobel Prize in economics for his work on game theory. This event was not ... 362 words

Professional Essays

  • Applying Games Theory to Airfare Competition ... air transportation companies in the United States market in relation to setting fares be explained as an application of game theoryampquot Game theory, as applied ... 3612 words
  • Decision Making Theory ampamp Process ... Game Theory, and Decision Making Game theory is relatively widely used in policy decision making, and deciding between alternative strategies.11 Game theory ... 3509 words
  • Negotiating ampamp Bargaining ... DUAL CONCERN MODEL ampamp GAME THEORY Depending on the issue, the Dual Concern Model of negotiation has gained a significant place in modern practice. ... 2460 words
  • Traditional Deterrence Theory ... Although there are several different versions of deterrence theory, the model developed by Thomas Schelling, derived from game theory, is often considered one ... 3734 words
  • Thinking Strategically ... The information is highly readable, has a solid, wellresearched scientific basis, and presents game theory in theoretical and technical depth. ... 2534 words
  • Coalition Formation ... Seeking to investigate the role of psychological processes versus the norms of game theory in bargaining for the splitting of money, their study invited groups ... 1840 words


Saved Paper

Save your papers so you can locate them quickly!

Newest Essays

Testimonials

  • "Thank You So Much!!! You have saved me once again!!!"
    Jack M.
  • "With so many papers to chose from, I was able to get ideas to help me with all of my classes. Thank You!"
    Brian P.
  • "I've used this site for the last 3 years to help me come up with ideas for my papers."
    Sara J.
  • "I use this site every week to help me write my own papers!"
    Rachel W.
  • "I love this site!!!"
    Marie N.
Home Join Now Support
Acceptable Use Policy About us FAQ
All papers are for research and reference purposes only!
© 2002-2009 DirectEssays.com. All Rights Reserved.