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

  1. mathematical
  2. types
  3. state
  4. analysis
  5. 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.

Frequently Occurring Word Combinations

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collocation frequency
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strategic thinking 2

Important Words

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  2. beautiful
  3. behaviorally
  4. bit
  5. bold
  6. called
  7. case
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  9. due
  10. economic
  11. equilibrium
  12. explain
  13. fame
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  17. john
  18. largely
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  20. level
  21. mathematical
  22. nash
  23. older
  24. people
  25. play
  26. popular
  27. prediction
  28. situations
  29. state
  30. theory
  31. time
  32. types
  33. world