full transcript
From the Ted Talk by Colin Camerer: When you're making a deal, what's going on in your brain?
Unscramble the Blue Letters
A very different theory, a much more popular one and an older one, due largely to John Nash of "A Beautiful Mind" fame, is what's called "equilibrium aynslais." So if you've ever taken a game theory course at any level, you'll have learned a bit about this. An equilibrium is a mteahtiaacml satte in which everybody has figured out exactly what everyone else will do. It is a very useful concept, but behaviorally, it may not exactly explain what people do the first time they play these tpyes of economic games or in situations in the outside wlord. In this case, the equilibrium makes a very bold prediction, which is: everyone wants to be below everyone else, therefore, they'll play zero.
Open Cloze
A very different theory, a much more popular one and an older one, due largely to John Nash of "A Beautiful Mind" fame, is what's called "equilibrium ________." So if you've ever taken a game theory course at any level, you'll have learned a bit about this. An equilibrium is a ____________ _____ in which everybody has figured out exactly what everyone else will do. It is a very useful concept, but behaviorally, it may not exactly explain what people do the first time they play these _____ of economic games or in situations in the outside _____. In this case, the equilibrium makes a very bold prediction, which is: everyone wants to be below everyone else, therefore, they'll play zero.
Solution
- mathematical
- types
- state
- analysis
- world
Original Text
A very different theory, a much more popular one and an older one, due largely to John Nash of "A Beautiful Mind" fame, is what's called "equilibrium analysis." So if you've ever taken a game theory course at any level, you'll have learned a bit about this. An equilibrium is a mathematical state in which everybody has figured out exactly what everyone else will do. It is a very useful concept, but behaviorally, it may not exactly explain what people do the first time they play these types of economic games or in situations in the outside world. In this case, the equilibrium makes a very bold prediction, which is: everyone wants to be below everyone else, therefore, they'll play zero.
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