The Maths of Game Theory

When we buy, sell, bargain, barter, bid at auctions, and compete for resources, we want to be sure that we are using the best strategies. Game theory can help us understand precisely these kinds of situations. That’s why in 1994, the Nobel Prize for Economics was won by a mathematician - John Nash.
Using games like the Prisoner’s dilemma, this lecture explains the work of game theorists such as Nash, David Blackwell and John von Neumann.
A lecture by Sarah Hart
The transcript and downloadable versions of the lecture are available from the Gresham College website:
www.gresham.ac...
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[@stephenede-borrett1452]

Excellent presentation - interesting AND educational, a rare combination.

[@barneylaurance1865]

The sealed bid second price / Vickrey auction is very similar to how eBay auctions work - except that eBay publishes the 2nd highest value continuously as the auction goes on, instead of keeping it private till the end. If you know for sure what the item is worth to you the best strategy is the same: bid what the thing is worth, i.e. the price at which you'd be indifferent about buying it, and use a sniping tool to bid in the last seconds so you don't influence anyone else to manually raise their bid.

[@LVSJT]

Great vid. Explained nicely for bozos like myself

[@LyndseyWard-o4s]

is this version of duelling with pistols historically accurate? i thought that both participants stood back to back and took ten paces and then turned and fired.

[@nHans]

As a fan of Hollywood Westerns, I must point out that that's not how gunfights are fought. You and your opponent are supposed to stand rooted at your spots, glaring at each other without blinking. You both start reaching very slowly-almost imperceptibly-for your holstered revolvers. Then something snaps and you both grab your guns, draw them out as quickly as possible, and shoot at the other from the hip. All speed, no math. On the other hand, the rules for pistol duels described in this lecture seem to have come from a particular historical hip-hop musical. Too bad the protagonist wasn't a math genius, eh? Otherwise-spoiler alert-the outcome might have been quite different. BTW, if you want to verify the accuracy of the numbers given in this video, you can duel it out with a consenting opponent using *paintball guns.* Alternatively, you can shoot at a target at different distances all by yourself.

[@eilonwy6]

She is specifically talking about a European style of dueling in which you start with your backs to eachother, walk three paces and then turn and shoot. You can choose not to shoot straight away, allow your opponent to miss and then take your shot at an advantage.

[@barneylaurance1865]

No mention of the shoot into the sky (or the trees above Burr's head) strategy!

[@alecwhittemore2295]

This is not a little known benefit and you are not getting something for nothing in my opinion this should only be done as an emergency

[@riccileggio]

She seems nice but, oh man, could she possibly go any longer explaining very simple stuff 🥱

[@myparceltape1169]

Yes, she does seem nice. Add her to your candidates for your Dating Strategy. I'll tell her that I've got a House ! I wonder what value she would put on that ? Seriously, I will have to go back and listen again to the part on paying 2nd highest bid.