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IMDb Description: Wealthy San Francisco financier Nicholas Van Orton gets a strange birthday present from wayward brother Conrad: a live-action game that consumes his life.



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2.5 Solution Concepts and Equilibria 2.6 Subgame Perfection 2.7 On Interpreting Payoffs: Morality and Efficiency in Games 2.8 Trembling Hands and Quantal Response Equilibria In this game, the basin of attraction for defection is large unless there is a high proportion of cooperators in round one. Therefore, they know what fate will await them at the enemy s hand if they don t win. Readers are referred to outstanding surveys in Kagel and Roth (1995), Camerer (2003), Samuelson (2005), and Guala (2005). So perhaps you must take your chances with the cobras; that is what she must least expect. Gintis (2009) argues that when we set out to use evolutionary game theory to unify the behavioral sciences, we begin by using it to unify game theory itself. Suppose first that you wish to cross a river that is spanned by three bridges. (Assume that swimming, wading or boating across are impossible.) The first bridge is known to be safe and free of obstacles; if you try to cross there, you will succeed. (For examples see Krebs and Davies 1984, Bell 1991, Dugatkin and Reeve 1998, Dukas 1998, and Noe, van Hoof and Hammerstein 2001.) On the other hand, as Hammerstein (2003) observes, reciprocity, and its exploitation and metaexploitation, are much more rarely seen in social non-human animals than game-theoretic modeling would lead us to anticipate. A further aspect of the findings not predictable by theoretical modeling alone, and which purely behavioral observation had not been sufficient to discriminate, was taken to be that responses by the caudate neurons to malevolent reciprocity—that is, reduced generosity in response to cooperation—were significantly smaller in amplitude. If the proportion of Fairmen drops below 33%, then the tendency will be for them to fall to extinction because they don t meet each other often enough. Gintis (2005) shows using a game theory model that this is implausible if punishment costs are significant. However, it clearly doesn t vitiate it altogether, since people (and other animals) often don t reverse their preferences. The technique for doing this was given by von Neumann & Morgenstern (1944), and was an essential aspect of their invention of game theory. For the moment, however, we will need only ordinal functions. The difficulty, as we saw, is that there seems to be no one solution concept we can unequivocally recommend for all situations, particularly where agents have private information. Both have higher value from the reference point the closer they are to it; but the curves do not cross, so my revealed preferences are consistent over time no matter how impatient I might be.

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