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Beautifully Misleading Mind Presented by: Jura Liaukonyte Ph.D. Student / Instructor University of Virginia “  If it’s true that we are here to help others, then what  exactly  are the others here for? ” - George Carlin
What is Game Theory ? ,[object Object],[object Object]
Games We Play ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Games Businesses Play ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Strategically thinking… ,[object Object],[object Object],[object Object]
Simultaneous Games ,[object Object],[object Object],[object Object],[object Object],[object Object]
Tools ,[object Object],[object Object]
The Beautiful Mind ,[object Object],[object Object],[object Object]
Episode ,[object Object]
A Beautiful Mind ,[object Object],[object Object]
Clearing up the Confusion ,[object Object],[object Object]
Adam Smith was right ,[object Object],[object Object],[object Object],[object Object]
Defining the Game ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Bar Scene: Nash Equilibrium 4 NE and all involve  Blonde Sally! John Jr.  Mary Jane Sally 3.5  ,  3.5 7  ,  7 7  ,  10 Mary 7  ,  7 3.5  ,  3.5 7  ,  10 Jane 10  ,  7 10  ,  7 5  ,  5 Sally Mark
“ Ah! I finally get it…NOT” Factor ,[object Object],[object Object]
“ Ah! I finally get it…NOT” Factor ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Bar Scene: John Jr. and Mark Choose Now suppose that 2 guys are less confident about “scoring” the blonde If chosen by both If chosen  by one 1.05 .15 2.1 .3 7 Mary 1.05 .15 2.1 .3 7 Jane 1 .1 2 .2 10 Sally Expected Value Probability Of Score Expected Value Probability Of Score Score
Nash Equilibrium and Mixed Strategies Now: 2 NE  (Brunette, Brunette) in predefined mixed strategies John Jr.   Mary Jane Sally 1.05  ,  1.05 2.1   ,  2.1 2.1   ,  2 Mary 2.1   ,  2.1 1.05  ,  1.05 2.1   ,  2 Jane 2  ,  2.1 2  ,  2.1 1  ,  1 Sally Mark
Problem with Blondes and Brunettes ,[object Object],[object Object],I will let you ponder if it is a reasonable assumption…
Thank you ,[object Object],Someone: “So… Are you saying it was socially efficient?” Me: “ Now  you are thinking like an economist!”

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Beautifully Misleading Mind

  • 1. Beautifully Misleading Mind Presented by: Jura Liaukonyte Ph.D. Student / Instructor University of Virginia “ If it’s true that we are here to help others, then what exactly are the others here for? ” - George Carlin
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14. The Bar Scene: Nash Equilibrium 4 NE and all involve Blonde Sally! John Jr. Mary Jane Sally 3.5 , 3.5 7 , 7 7 , 10 Mary 7 , 7 3.5 , 3.5 7 , 10 Jane 10 , 7 10 , 7 5 , 5 Sally Mark
  • 15.
  • 16.
  • 17. The Bar Scene: John Jr. and Mark Choose Now suppose that 2 guys are less confident about “scoring” the blonde If chosen by both If chosen by one 1.05 .15 2.1 .3 7 Mary 1.05 .15 2.1 .3 7 Jane 1 .1 2 .2 10 Sally Expected Value Probability Of Score Expected Value Probability Of Score Score
  • 18. Nash Equilibrium and Mixed Strategies Now: 2 NE (Brunette, Brunette) in predefined mixed strategies John Jr. Mary Jane Sally 1.05 , 1.05 2.1 , 2.1 2.1 , 2 Mary 2.1 , 2.1 1.05 , 1.05 2.1 , 2 Jane 2 , 2.1 2 , 2.1 1 , 1 Sally Mark
  • 19.
  • 20.