Game Theory 101: Independence

[@Weijie2008]

Very good explanation! This tutorial helps me understand textbook much better!

[@shyan042688]

Just wondering... Why is this axiom called "independence"? What is independent of what here, exactly? I can't seem to make the semantic connection here...

[@HarryLangers]

In the definition of independence, I think we must have p in (0, 1]? Otherwise we can take p = 0, and get "I prefer X to Y if and only if I prefer Z to Z."

[@starstar8029]

Hi i wanna ask a question and can you help me please? Consider the set of outcomes X = {a, b, c, d} and the following lotteries. L1 =1/4[a] + 3/4[b], L2 =1/2[b] + 1/4[c] + 1/4[d] L3 =1/6[a] + 1/6[b] + 2/3[d] L4 =1/6[c] + 5/6[d] Show that-to be consistent with the Independence Axiom-if L1 is chosen over L2 then L3 should be chosen over L4. ???

[@Dhampiro99]

First of all thanks for your explanations William, and I wanted to ask you about your references, can you recommend a good book to study Economy of uncertainty well explained?

[@Gametheory101]

Alex Fredes Salas I am a political scientist, so I can't be of much help there. Sorry.

[@Norroner1]

Excellent job, however I would suggest to use special equation editing programs to display equations that become very congested with all the paranetheses, such as the one with the compounded lotteries. It makes it easier to understand... just my $.02

[@chenaren]

QQ