DOCSLIB.ORG

The Winners Curse Free

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Winners Curse Free FREE THE WINNERS CURSE PDF Marie Rutkoski | 368 pages | 03 Jul 2014 | Bloomsbury Publishing PLC | 9781408858202 | English | London, United Kingdom The Winner's Curse (The Winner's Trilogy, #1) by Marie Rutkoski The winning bid exceeds the value of the auctioned asset and, in absolute terms, the winner is worse off. The value of the asset is less than that anticipated by the bidder, so the bidder may have won the auction but will still be worse off than anticipated. The severity of the winner's curse increases with the number of bidders. The winner's curse can be experienced by both financial or strategic buyers. Each potential buyer in an auction will individually The Winners Curse the value of the firm The Winners Curse bidding. Buyers, The Winners Curse effect, are pre-paying for uncertain future revenues and cost synergies. In an urge The Winners Curse beat competing bidders, the winners tend to overpay. This overpayment is known as winner's curse or hubris. The level of goodwill is a crude measure of the loss incurred. In an effort to grow their firms, competitive and overly confident managers with high compensation packages make rash decisions. The Winners Curse, firms must exercise caution to not The Winners Curse in on the bandwagon without strategic purpose and a clear road map for integration. To avoid this winner's curse, buyers must perform comprehensive due diligence and establish walk-away prices that they are willing to stick to in the heat of an auction process. Toggle navigation Menu. Definition - What does Winner's Curse mean? Divestopedia explains Winner's Curse The severity of the winner's curse increases with the number of bidders. Share this:. Related Terms. Related Articles. The Intellectual Capital Agrarian. Is a formal business valuation needed for exit planning? What concerns do buyers have during due diligence? Why do deals fall apart? More of your questions answered by our Experts. Related Tags. Latest Articles. The Winner's Curse read free novels online by Marie Rutkoski in read free novels online The winner's curse is a phenomenon that may occur in common value auctionswhere all bidders have the same ex The Winners Curse value for an item but receive different private ex ante signals about this value and wherein the winner is the bidder with the The Winners Curse optimistic evaluation of the asset and therefore will tend to overestimate and overpay. Accordingly, the winner will be "cursed" in one of two ways: either the winning bid will exceed the value of the auctioned asset making the winner worse off in absolute terms, or the value of the asset will be less than the bidder anticipated, so the bidder may garner a net gain but will be worse off than anticipated. Outer Continental Shelf auctions are common value auctions, where value of the oil in the ground is essentially the same to all bidders. In a common value auction, the auctioned item is of roughly equal value to all bidders, but the bidders don't know the item's market value when they bid. Each player independently The Winners Curse the value of the item before bidding. The winner of an auction is the bidder who submits the highest bid. Since the auctioned item The Winners Curse worth roughly the same to all bidders, they are distinguished only by their respective estimates of the market value. The winner, then, is the bidder making the highest estimate. If we assume that the average bid is accurate, then the highest bidder overestimates the item's value. Thus, the auction's winner is likely to overpay. More formally, this result is obtained using conditional expectation. We are interested in a bidder's expected value from the auction the expected value of the item, minus the expected price conditioned on the assumption that the bidder wins the auction. It turns out that for a bidder's true estimate the expected value is negative, meaning that on average the winning bidder is overpaying. Savvy bidders will avoid the winner's curse by bid shadingThe Winners Curse placing a bid The Winners Curse is below their ex ante estimation of the value of the item for sale—but equal to their ex post belief about the The Winners Curse of the item, given that they win the auction. The key point is that winning the auction is bad news about the value of the item for the winner. It means that he or she was the most optimistic and, if bidders are correct in their estimations on average, that too much was paid. Therefore savvy bidders revise their ex ante estimations downwards to take account of this effect. The severity of the winner's curse increases with the number of bidders. This is because the more bidders, the more likely it is that some of them have overestimated the auctioned item's value. In technical terms, the winner's expected estimate is the value of the n th order statisticwhich increases as the number The Winners Curse bidders increases. There is often confusion that the winner's curse applies to the winners of all auctions. However, it is worth repeating here that for auctions with private value i. Similarly, there may be occasions when the average bid is too low relative to exterior market conditions e. Since most auctions involve at least some amount of common value, and some degree of uncertainty about that common value, the winner's curse is an important phenomenon. In the s, when the term winner's curse was first coined, there was no accurate method to estimate the potential value of an offshore oil field. The term winner's curse is also used in statistics to refer to the regression toward the mean phenomenon, particularly in genome-wide association studies and epidemiology. In studies involving The Winners Curse tests on one sample of the full population, the consequent stringent The Winners Curse for significance make it likely that the first person to report a significant test the winner will also report an effect size much larger than is likely to be seen in subsequent replication studies. From Wikipedia, the free encyclopedia. This article includes a list of general referencesbut it remains largely unverified because it lacks sufficient corresponding inline citations. Please help to improve this article by introducing more precise citations. September Learn how and when to remove this template message. Main The Winners Curse Regression toward the mean. Journal of Petroleum Technology. Society of Petroleum Engineers. Topics in game theory. Cooperative game Determinacy Escalation of commitment Extensive-form game First-player and second-player win Game complexity Graphical game Hierarchy of beliefs Information set Normal-form game Preference Sequential game Simultaneous game Simultaneous action selection Solved game Succinct game. Nash equilibrium Subgame perfection Mertens-stable equilibrium Bayesian Nash equilibrium Perfect Bayesian equilibrium Trembling hand Proper equilibrium Epsilon-equilibrium Correlated equilibrium Sequential equilibrium Quasi-perfect equilibrium Evolutionarily stable strategy Risk dominance Core Shapley value Pareto efficiency Gibbs equilibrium Quantal response equilibrium Self-confirming equilibrium Strong Nash equilibrium Markov perfect equilibrium. Arrow's impossibility theorem Aumann's agreement theorem Folk theorem Minimax The Winners Curse Nash's theorem Purification theorem Revelation principle Zermelo's theorem. Albert W. Levine David M. Kreps Donald B. All-pay auction Alpha—beta pruning Bertrand paradox Bounded rationality Combinatorial game theory Confrontation analysis Coopetition Evolutionary game theory First-move advantage in chess Game mechanics Glossary of game theory List of game theorists List of games in game theory No-win situation Solving chess Topological game Tragedy of the commons Tyranny of small decisions. Categories The Winners Curse Bargaining theory Auction theory Curses. Hidden categories: Articles lacking in-text citations from September All articles lacking in-text citations Wikipedia articles needing clarification The Winners Curse March Namespaces Article Talk. Views Read Edit View history. Help Learn to edit Community portal Recent changes Upload file. Download as PDF Printable version. Winner's Curse: Negotiation Mistakes to Avoid It states that, in common value auctions where there is incomplete information, the winner will tend to overpay. The reason why this is the case, is easy to see. Instead, every participant independently estimates the value before the bidding starts. Once the auction finished, the winner of the auction will be the person who bid the highest price. If The Winners Curse assume that the average bid price is close to the actual value of the price the vertical red linethen winner will have paid more than this actual value e. Winning the auction is thus actually bad news for the winner, because it suggest that the average value that the other bidders assign to the item is lower than what the winner paid. The more bidders, the more The Winners Curse it is that The Winners Curse participants overestimate the value of the object and the higher the eventual price paid by the winner. By downward adjusting our bid we will probably be closer to the average value, and thus avoid paying too much. When a company becomes stock listed, no market price for the stock is available. As such, investors need to estimate its market value. Uninformed investors will most likely bid more than the fair value, while smart investors will not subscribe. When bidding, we should correct our The Winners Curse for the possibility that our bids are higher than the actual value of the item. Summary When The Winners Curse, we should correct our bids for the possibility that our bids are higher than the actual value of the item..
Load more

Recommended publications
  • Learning and Equilibrium
    Learning and Equilibrium Drew Fudenberg1 and David K. Levine2 1Department of Economics, Harvard University, Cambridge, Massachusetts; email: [email protected] 2Department of Economics, Washington University of St. Louis, St. Louis, Missouri; email: [email protected] Annu. Rev. Econ. 2009. 1:385–419 Key Words First published online as a Review in Advance on nonequilibrium dynamics, bounded rationality, Nash equilibrium, June 11, 2009 self-confirming equilibrium The Annual Review of Economics is online at by 140.247.212.190 on 09/04/09. For personal use only. econ.annualreviews.org Abstract This article’s doi: The theory of learning in games explores how, which, and what 10.1146/annurev.economics.050708.142930 kind of equilibria might arise as a consequence of a long-run non- Annu. Rev. Econ. 2009.1:385-420. Downloaded from arjournals.annualreviews.org Copyright © 2009 by Annual Reviews. equilibrium process of learning, adaptation, and/or imitation. If All rights reserved agents’ strategies are completely observed at the end of each round 1941-1383/09/0904-0385$20.00 (and agents are randomly matched with a series of anonymous opponents), fairly simple rules perform well in terms of the agent’s worst-case payoffs, and also guarantee that any steady state of the system must correspond to an equilibrium. If players do not ob- serve the strategies chosen by their opponents (as in extensive-form games), then learning is consistent with steady states that are not Nash equilibria because players can maintain incorrect beliefs about off-path play. Beliefs can also be incorrect because of cogni- tive limitations and systematic inferential errors.
    [Show full text]
  • (Over)Confidence Predicts Escalation of Public Commitment
    Journal of Experimental Social Psychology 69 (2017) 13–22 Contents lists available at ScienceDirect Journal of Experimental Social Psychology journal homepage: www.elsevier.com/locate/jesp Pride before the fall: (Over)confidence predicts escalation of public commitment Richard Ronay ⁎, Janneke K. Oostrom, Nale Lehmann-Willenbrock, Mark Van Vugt Vrije Universiteit Amsterdam, The Netherlands HIGHLIGHTS • We examined the effect of overconfidence on escalation of commitment. • In a private context, overconfidence is unrelated to escalation decisions. • In a public context, overconfidence is positively related to escalation decisions. • Individual differences in overconfidence are related to reputation sensitivity. • Reputational concerns drive publicly announced investment decision. article info abstract Article history: In four studies we examined the effect of overconfidence on escalation of commitment in investment tasks. Study Received 16 February 2016 1(N = 105) revealed a positive relationship between overconfidence and decisions to escalate. In contrast, Study Revised 15 October 2016 2(N = 121) showed that overconfidence was negatively related to escalation of commitment. The reversal of this Accepted 16 October 2016 effect appeared to emerge as a function of the public (Study 1) versus private (Study 2) context in which the in- Available online 20 October 2016 vestment decisions were made. In Study 3 (N = 108) and Study 4 (N = 380) we experimentally replicated this pattern of findings and found support for the explanatory role of reputational concerns. A meta-analysis of the Keywords: fi fi Overconfidence ndings from our four studies showed that overcon dence is positively related to escalation of commitment in Confidence public contexts, and that this relationship is absent when decisions are made privately.
    [Show full text]
  • Manipulation of Suspects and Unrecorded Questioning: After Fifty Years of Miranda Jurisprudence, Still Two (Or Maybe Three) Burning Issues
    MANIPULATION OF SUSPECTS AND UNRECORDED QUESTIONING: AFTER FIFTY YEARS OF MIRANDA JURISPRUDENCE, STILL TWO (OR MAYBE THREE) BURNING ISSUES ∗ CHRISTOPHER SLOBOGIN INTRODUCTION ............................................................................................ 1158 I. THREE GENERATIONS OF INTERROGATION TECHNIQUES ................. 1160 II. THE LEGALITY OF SECOND-GENERATION TECHNIQUES .................. 1164 A. Coercion ................................................................................... 1164 1. Manipulative Techniques That Are Coercive ..................... 1168 2. Manipulative Techniques That Are Not Coercive .............. 1171 3. The Rights Predicate and State Action ............................... 1173 4. Summary ............................................................................ 1177 B. Reliability ................................................................................. 1177 1. The Defendant’s Burden of Production .............................. 1181 2. The Prosecution’s Burden of Proof .................................... 1187 III. RECORDING ...................................................................................... 1188 A. The Constitutional Arguments .................................................. 1190 B. Extending the Recording Right Beyond the Stationhouse ........ 1192 IV. A WORD ON INTERROGATION OF SUSPECTED TERRORISTS .............. 1194 CONCLUSION ................................................................................................ 1195 Fifty years after Miranda,
    [Show full text]
  • Modeling Strategic Behavior1
    Modeling Strategic Behavior1 A Graduate Introduction to Game Theory and Mechanism Design George J. Mailath Department of Economics, University of Pennsylvania Research School of Economics, Australian National University 1September 16, 2020, copyright by George J. Mailath. World Scientific Press published the November 02, 2018 version. Any significant correc- tions or changes are listed at the back. To Loretta Preface These notes are based on my lecture notes for Economics 703, a first-year graduate course that I have been teaching at the Eco- nomics Department, University of Pennsylvania, for many years. It is impossible to understand modern economics without knowl- edge of the basic tools of game theory and mechanism design. My goal in the course (and this book) is to teach those basic tools so that students can understand and appreciate the corpus of modern economic thought, and so contribute to it. A key theme in the course is the interplay between the formal development of the tools and their use in applications. At the same time, extensions of the results that are beyond the course, but im- portant for context are (briefly) discussed. While I provide more background verbally on many of the exam- ples, I assume that students have seen some undergraduate game theory (such as covered in Osborne, 2004, Tadelis, 2013, and Wat- son, 2013). In addition, some exposure to intermediate microeco- nomics and decision making under uncertainty is helpful. Since these are lecture notes for an introductory course, I have not tried to attribute every result or model described. The result is a somewhat random pattern of citations and references.
    [Show full text]
  • Comparing Auction Designs Where Suppliers Have Uncertain Costs and Uncertain Pivotal Status
    RAND Journal of Economics Vol. 00, No. 0, Winter 2018 pp. 1–33 Comparing auction designs where suppliers have uncertain costs and uncertain pivotal status ∗ Par¨ Holmberg and ∗∗ Frank A. Wolak We analyze how market design influences bidding in multiunit procurement auctions where suppliers have asymmetric information about production costs. Our analysis is particularly relevant to wholesale electricity markets, because it accounts for the risk that a supplier is pivotal; market demand is larger than the total production capacity of its competitors. With constant marginal costs, expected welfare improves if the auctioneer restricts offers to be flat. We identify circumstances where the competitiveness of market outcomes improves with increased market transparency. We also find that, for buyers, uniform pricing is preferable to discriminatory pricing when producers’ private signals are affiliated. 1. Introduction Multiunit auctions are used to trade commodities, securities, emission permits, and other divisible goods. This article focuses on electricity markets, where producers submit offers before the level of demand and amount of available production capacity are fully known. Due to demand shocks, unexpected outages, transmission-constraints, and intermittent output from renewable energy sources, it often arises that an electricity producer is pivotal, that is, that realized demand is larger than the realized total production capacity of its competitors. A producer that is certain to be pivotal possess a substantial ability to exercise market power because it can withhold output ∗ Research Institute of Industrial Economics (IFN), Associate Researcher of the Energy Policy Research Group (EPRG), University of Cambridge; [email protected]. ∗∗ Program on Energy and Sustainable Development (PESD) and Stanford University; [email protected].
    [Show full text]
  • Game-Based Verification and Synthesis
    Downloaded from orbit.dtu.dk on: Sep 30, 2021 Game-based verification and synthesis Vester, Steen Publication date: 2016 Document Version Publisher's PDF, also known as Version of record Link back to DTU Orbit Citation (APA): Vester, S. (2016). Game-based verification and synthesis. Technical University of Denmark. DTU Compute PHD-2016 No. 414 General rights Copyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights. Users may download and print one copy of any publication from the public portal for the purpose of private study or research. You may not further distribute the material or use it for any profit-making activity or commercial gain You may freely distribute the URL identifying the publication in the public portal If you believe that this document breaches copyright please contact us providing details, and we will remove access to the work immediately and investigate your claim. Ph.D. Thesis Doctor of Philosophy Game-based verification and synthesis Steen Vester Kongens Lyngby, Denmark 2016 PHD-2016-414 ISSN: 0909-3192 DTU Compute Department of Applied Mathematics and Computer Science Technical University of Denmark Richard Petersens Plads Building 324 2800 Kongens Lyngby, Denmark Phone +45 4525 3031 [email protected] www.compute.dtu.dk Summary Infinite-duration games provide a convenient way to model distributed, reactive and open systems in which several entities and an uncontrollable environment interact.
    [Show full text]
  • Traditions in Conflict: the Internationalization of Confrontation Kweku Vanderpuyet
    Cornell International Law Journal Volume 43 Article 3 Issue 3 Fall 2010 Traditions in Conflict: The nI ternationalization of Confrontation Kweku Vanderpuye Follow this and additional works at: http://scholarship.law.cornell.edu/cilj Part of the Law Commons Recommended Citation Vanderpuye, Kweku (2010) "Traditions in Conflict: The nI ternationalization of Confrontation," Cornell International Law Journal: Vol. 43: Iss. 3, Article 3. Available at: http://scholarship.law.cornell.edu/cilj/vol43/iss3/3 This Article is brought to you for free and open access by the Journals at Scholarship@Cornell Law: A Digital Repository. It has been accepted for inclusion in Cornell International Law Journal by an authorized administrator of Scholarship@Cornell Law: A Digital Repository. For more information, please contact [email protected]. Traditions in Conflict: The Internationalization of Confrontation Kweku Vanderpuyet This article considers internationalnorms concerning the right to adver- sarial confrontation in positing a normative analytical standard of admissibil- ity with respect to the "right to examine" guaranteed under Article 67(1)(e) of the Rome Statute of the International Criminal Court (ICC). It considers the notion of confrontation in the context of both the Continental European tradi- tion, as well as the Anglo-American Common Law conception of the right, focusing on U.S. constitutional doctrine and relatively recent developments in English jurisprudence. It also surveys the scope of the right to examine as defined by the U.N. Human Rights
    [Show full text]
  • Gradient Play in N-Cluster Games with Zero-Order Information
    Gradient Play in n-Cluster Games with Zero-Order Information Tatiana Tatarenko, Jan Zimmermann, Jurgen¨ Adamy Abstract— We study a distributed approach for seeking a models, each agent intends to find a strategy to achieve a Nash equilibrium in n-cluster games with strictly monotone Nash equilibrium in the resulting n-cluster game, which is mappings. Each player within each cluster has access to the a stable state that minimizes the cluster’s cost functions in current value of her own smooth local cost function estimated by a zero-order oracle at some query point. We assume the response to the actions of the agents from other clusters. agents to be able to communicate with their neighbors in Continuous time algorithms for the distributed Nash equi- the same cluster over some undirected graph. The goal of libria seeking problem in multi-cluster games were proposed the agents in the cluster is to minimize their collective cost. in [17]–[19]. The paper [17] solves an unconstrained multi- This cost depends, however, on actions of agents from other cluster game by using gradient-based algorithms, whereas the clusters. Thus, a game between the clusters is to be solved. We present a distributed gradient play algorithm for determining works [18] and [19] propose a gradient-free algorithm, based a Nash equilibrium in this game. The algorithm takes into on zero-order information, for seeking Nash and generalized account the communication settings and zero-order information Nash equilibria respectively. In discrete time domain, the under consideration. We prove almost sure convergence of this work [5] presents a leader-follower based algorithm, which algorithm to a Nash equilibrium given appropriate estimations can solve unconstrained multi-cluster games in linear time.
    [Show full text]
  • PEER Stage2 10.1016%2Fj.Jebo.2
    Leveraging Resistance to Change and the Skunk Works Model of Innovation Andrea Fosfuri, Thomas Rønde To cite this version: Andrea Fosfuri, Thomas Rønde. Leveraging Resistance to Change and the Skunk Works Model of Innovation. Journal of Economic Behavior and Organization, Elsevier, 2009, 72 (1), pp.274. 10.1016/j.jebo.2009.05.008. hal-00699208 HAL Id: hal-00699208 https://hal.archives-ouvertes.fr/hal-00699208 Submitted on 20 May 2012 HAL is a multi-disciplinary open access L’archive ouverte pluridisciplinaire HAL, est archive for the deposit and dissemination of sci- destinée au dépôt et à la diffusion de documents entific research documents, whether they are pub- scientifiques de niveau recherche, publiés ou non, lished or not. The documents may come from émanant des établissements d’enseignement et de teaching and research institutions in France or recherche français ou étrangers, des laboratoires abroad, or from public or private research centers. publics ou privés. Accepted Manuscript Title: Leveraging Resistance to Change and the Skunk Works Model of Innovation Authors: Andrea Fosfuri, Thomas Rønde PII: S0167-2681(09)00136-X DOI: doi:10.1016/j.jebo.2009.05.008 Reference: JEBO 2395 To appear in: Journal of Economic Behavior & Organization Received date: 14-8-2007 Revised date: 4-5-2009 Accepted date: 6-5-2009 Please cite this article as: Fosfuri, A., Rønde, T., Leveraging Resistance to Change and the Skunk Works Model of Innovation, Journal of Economic Behavior and Organization (2008), doi:10.1016/j.jebo.2009.05.008 This is a PDF file of an unedited manuscript that has been accepted for publication.
    [Show full text]
  • Escalation Revisited: Investigating the Influence of Personality and Organizational Support on Escalation of Commitment
    Escalation Revisited: Investigating the Influence of Personality and Organizational Support on Escalation of Commitment by Julia Walsh Howell A dissertation submitted to the Graduate Faculty of Auburn University in partial fulfillment of the requirements for the Degree of Doctor of Philosophy Auburn, Alabama August 2, 2014 Keywords: Escalation of commitment, personality, organizational support, sunk costs Copyright 2014 by Julia Walsh Howell Approved by Daniel Svyantek, Chair, Professor and Chair, Department of Psychology Ana Franco-Watkins, Associate Professor, Department of Psychology Alejandro Lazarte, Associate Professor, Department of Psychology Alan Walker, Associate Professor, Department of Management Abstract Escalation of commitment research has been narrow in its scope of influencing factors. A goal of this study was to remedy this gap by including factors at the individual, organizational, and decision context level that affect escalation. Furthermore, to my knowledge there is no other escalation research that has included both an economic and a human resources (HR) decision scenario. A significant contribution of this study was the results showing these two types of scenarios have different, and sometimes opposing, outcomes. In the economic context, sunk costs were positively related to escalation, but the relationship was inversed in the HR context. Additionally, facets of neuroticism and openness to experience were related to escalation in the economic context, but no such relationships were present in the HR context. Openness to experience moderated the relationship between organizational support and escalation. The results in the HR context have practical implications regarding how managers select, train, promote, and terminate employees. Furthermore, the differential outcomes in the economic and HR contexts provide a first step in expanding the theoretical implications of varying contexts and their influence on escalation.
    [Show full text]
  • Survey of the Computational Complexity of Finding a Nash Equilibrium
    Survey of the Computational Complexity of Finding a Nash Equilibrium Valerie Ishida 22 April 2009 1 Abstract This survey reviews the complexity classes of interest for describing the problem of finding a Nash Equilibrium, the reductions that led to the conclusion that finding a Nash Equilibrium of a game in the normal form is PPAD-complete, and the reduction from a succinct game with a nice expected utility function to finding a Nash Equilibrium in a normal form game with two players. 2 Introduction 2.1 Motivation For many years it was unknown whether a Nash Equilibrium of a normal form game could be found in polynomial time. The motivation for being able to due so is to find game solutions that people are satisfied with. Consider an entertaining game that some friends are playing. If there is a set of strategies that constitutes and equilibrium each person will probably be satisfied. Likewise if financial games such as auctions could be solved in polynomial time in a way that all of the participates were satisfied that they could not do any better given the situation, then that would be great. There has been much progress made in the last fifty years toward finding the complexity of this problem. It turns out to be a hard problem unless PPAD = FP. This survey reviews the complexity classes of interest for describing the prob- lem of finding a Nash Equilibrium, the reductions that led to the conclusion that finding a Nash Equilibrium of a game in the normal form is PPAD-complete, and the reduction from a succinct game with a nice expected utility function to finding a Nash Equilibrium in a normal form game with two players.
    [Show full text]
  • Equilibrium Computation in Normal Form Games
    Tutorial Overview Game Theory Refresher Solution Concepts Computational Formulations Equilibrium Computation in Normal Form Games Costis Daskalakis & Kevin Leyton-Brown Part 1(a) Equilibrium Computation in Normal Form Games Costis Daskalakis & Kevin Leyton-Brown, Slide 1 Tutorial Overview Game Theory Refresher Solution Concepts Computational Formulations Overview 1 Plan of this Tutorial 2 Getting Our Bearings: A Quick Game Theory Refresher 3 Solution Concepts 4 Computational Formulations Equilibrium Computation in Normal Form Games Costis Daskalakis & Kevin Leyton-Brown, Slide 2 Tutorial Overview Game Theory Refresher Solution Concepts Computational Formulations Plan of this Tutorial This tutorial provides a broad introduction to the recent literature on the computation of equilibria of simultaneous-move games, weaving together both theoretical and applied viewpoints. It aims to explain recent results on: the complexity of equilibrium computation; representation and reasoning methods for compactly represented games. It also aims to be accessible to those having little experience with game theory. Our focus: the computational problem of identifying a Nash equilibrium in different game models. We will also more briefly consider -equilibria, correlated equilibria, pure-strategy Nash equilibria, and equilibria of two-player zero-sum games. Equilibrium Computation in Normal Form Games Costis Daskalakis & Kevin Leyton-Brown, Slide 3 Tutorial Overview Game Theory Refresher Solution Concepts Computational Formulations Part 1: Normal-Form Games
    [Show full text]