## Playlist of game theory videos:

## Contents:

Expected Utility

Game Theory, Dominant Strategies

Toy Games and Nash Equilibrium

Nash Equilibrium: formal definition; fixed point of best response correspondence

Extensive form games and subgame perfection

Hold-up game; Stackelberg outcome in duopoly

Schumpeter’s Capitalism

Socialist Debate

Economics 300 playlist

Economics without Graphs

## Expected utility

#### Concepts: Uncertainty, Lotteries, Expected value vs. expected utility, Risk aversion

Note: At about 1:25 in the second video, 1/6 should be 1/2 (so that the probabilities add up to 1). The same 1/6 should be replaced with 1/2 in the calculations that follow.

## Expected utility 1a Expected utility 1b

**For class:** Bring an example of a decision you have made (large or small) that involved uncertainty. Can you model it as a choice between lotteries (or a certain outcome and a lottery)? Is there more than one way to model it as a lottery? How did you find the probabilities of the outcomes? What about the payoffs? Do you think you showed risk aversion with your choice?

## Game theory

#### Concepts: Definition of a game, Dominant strategy, Prisoner’s dilemma

**For class:** Bring an example of a strategic situation that you have encountered. Describe it as a game. Do any of the players have any dominant strategies? In addition, bring an example of a game that you believe is a prisoner’s dilemma (but not the classic example involving prisoners). Your game could be from everyday interactions, or something you read in the news recently–or anything else. Your game may involve more than two players.