rising-stars-by-sunshine / cs-econ206_jiaolun_zhou_final

• Intellectual growth: After completing this dissertation I found that the interdisciplinary approach allowed me to calculate Nash equilibrium solutions and results for various games much faster, which saved me a lot of time and allowed me to use more complex game models.

When I used the computer science approach to economics, I found that Nash equilibrium has serious problems in analyzing real-world conflicts, such as the waste of resources and the pointless internal consumption of governments. If we could focus a little less on rational economic man theory and single round games, we would find that we actually have better equilibrium solutions, such as the grass field equilibrium proposed in this paper.

The interdisciplinary approach opens our eyes and allows us to look at our research with an outsider's perspective.

• Professional growth: In the process of my research, I enhanced my skills in using SPNE and other economics-related software and studied Nash equilibrium in more depth. At the same time, I also studied some theories in computer science and social science and put them into practice in problem solving and thinking.

In the process, I discovered some gaps in theories and was able to propose new solutions using an interdisciplinary approach.

• Living a purposeful life: I hope to come up with more economic theories that meet realistic needs using an interdisciplinary approach and computer-based tools. For example, the meadow equilibrium that appears in this paper. If I win the Nobel Prize one day, I would hope that other people studying economics would not be overly obsessed with the conditions set in Nash equilibrium as I am, otherwise innovation is difficult. In the future I hope to try some challenges to other theories, I think no theory is perfect.

More about the Author

• headshot

• self-introduction I am a student majoring in Computer design in the track of computer science. Currently studying at Duke Kunshan University.

• Final reflections

• Something about limitations of Nash equilibrium

(1) Nash equilibrium is based on the theory of rational economic man (Nisan). However, in the ultimatum game, I analyzed in week 1, it is easy to see that some participants are willing to reduce their benefits to punish players who are unwilling to follow the rules of the game or betray the cooperative players. Participants do not always act to maximize their benefits, so Nash equilibria do not always hold in the real world.

(2) Nash equilibrium assumes that all players know everything around them, such as the ability to accurately assess the price of certain goods about the quantity produced, or to accurately predict the benefits of certain actions for themselves. Or that two players can always share the same knowledge or agree on certain issues. In the real world, however, this is not possible, so even if the players are rational and want to maximize their benefits, they may not be able to make the best choices.

References

• Nisan, Noam. Algorithmic Game Theory. 2007.

@article{levin2022bridging,
  title={Bridging level-k to nash equilibrium},
  author={Levin, Dan and Zhang, Luyao},
  journal={Review of Economics and Statistics},
  volume={104},
  number={6},
  pages={1329--1340},
  year={2022},
  publisher={MIT Press One Rogers Street, Cambridge, MA 02142-1209, USA journals-info~…}
}