rising-stars-by-sunshine / cs-econ206_rong_cong_ps2

# Problem Set 2: Decipher Game Theory

Project information

• Author: Rong Cong, 2024,Duke Kunshan University
• Instructor: Prof. Luyao Zhang, Duke Kunshan University
• Disclaimer: Submissions to the Problem Set No. or Final Project for COMPSCI/ECON 206 Computational Microeconomics, 2023 Spring (Seven Week - Second) instructed by Prof. Luyao Zhang at Duke Kunshan University.
• Acknowledgments: I would like to thank Prof. Luyao Zhang for her wonderful curriculum setting and instructions on CSEcon 206.Thank haowen and wanling very much for helping me deep understand Overleef.
• Project Summary:
  • Project overview. The flow and contents of the project are described in readme.file below.
  • Overview of game theory. This program will outline important milestones in game theory and the definition of Bayesian Nash Equilibrium. This document is uploaded to the code folder as an Overleaf.zip file.
  • Game simulation. This project will use Google Colab and GTE to briefly describe two game theory games and find nash equilibrium.

Note: please insert the screenshot of the answers to your research question by ChatGPT. The methodology that you use to address the research questions must be more innovative than both the current literature and ChatGPT.

Table of Contents

• structure
• spotlight
• more about the author

Structure

• This project is an expanded project focusing on game theory.Firstly, overleaf reviews the milestone of game theory and the definition and proof of Bayesian Nash equilibrium. Second, a table of definitions of five important game theory words was produced by drawing on the most original literature. Third, we simply simulate two game theory games -- the Prisoner's Dilemma and game theory Explore -- using Google Colab and Game Theory Explore. Two types of game theoretic games are the Prisoner's Dilemma and the Ultimatum game. Among them, the Prisoner's dilemma is a well-known concept in game theory that describes a conflict between cooperation and competition between two people.Matching Pennies is a two-player game theory game in which two players choose either "heads" or "tails" at the same time and then display their choices. The game is often used to study strategy choice and the concept of equilibrium in games.

Spotlight

Here is the pdf of overleaf.https://github.com/Rising-Stars-by-Sunshine/CS-ECON206_Rong_Cong_PS2/blob/main/spotlight/polished%20ps2%20overleaf.pdf

Here is the zip of overleaf.https://github.com/Rising-Stars-by-Sunshine/CS-ECON206_Rong_Cong_PS2/blob/main/spotlight/rong.zip

Here is the code of models.https://github.com/Rising-Stars-by-Sunshine/CS-ECON206_Rong_Cong_PS2/blob/main/code/polished_rong.ipynb

• Reflections and analyses on the limitations and practical significance of Matching Pennies:

• Reflections and analyses on the limitations and practical significance of Matching Pennies:

Matching Pennies can only be used in limited situations, with players having limited choices at each turn. Matching Pennies cannot be used if the player's choices are continuous or unlimited. However, Matching Pennies can be used to describe some real-world situations. In intelligence analysis and counterespionage, for example, Matching Pennies are used to describe guessing games between two parties, in which each tries to guess the intentions and actions of the other. Matching Pennies can also be used to describe the strategies used by both parties in market competition, in which each competitor tries to anticipate the actions of his or her rivals in order to devise the best strategy.

• Reflection and Analysis on the limitations of poisoner dilemma and its practical Significance:

First of all, I still think that the biggest assumption of the prisoner's dilemma is based on rational behavior. However, in real life, people's behavior is not always rational, but influenced by emotional, moral and cultural factors. However, the prisoner's dilemma can be used to describe some real-world situations. For example, in international relations, the prisoner's dilemma is used to describe a game between two states in which there is a possibility that either state will choose to take an aggressive action that will result in losses for both. In business, the Prisoner's dilemma can also be used to describe the tradeoff between cooperation and competition.

More about the Author

• As a junior majoring in political economy, Rong Cong is very interested in economics, anthropology and psychology. She hopes to do enough cross-disciplinary research and study in the future. At the same time, Rong Cong is also a music lover. This is a cover of her song 👉🏻https://y.music.163.com/m/artist?app_version=8.9.61&id=46956986&userid=1572161264&dlt=0846.

References

• Literature References in Chicago Author-Date Style and BibTex

Levin, Dan, and Luyao Zhang. 2020. “Bridging Level-K to Nash Equilibrium.” The Review of Economics and Statistics 104 (6): 1329–40. https://doi.org/10.1162/rest_a_00990.

@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~…}
}