Theory Lectures — Game

This is where the professor tells you that to play optimally in a game like Rock-Paper-Scissors (or soccer penalty kicks), you have to randomize. You have to calculate the exact probability (p) that makes your opponent indifferent between their options.

Instead, I got a blackboard full of matrices, strange squiggly lines, and a professor muttering about "common knowledge of rationality." Game Theory Lectures

You learn about and the "Grim Trigger" strategy. The math shows that if you are going to interact with someone forever (your neighbor, your boss, your spouse), cooperation is actually the rational choice. This is where the professor tells you that

The magic happens during the module. The professor draws a tree diagram. You have two players: an Entrant and a Monopolist. The Entrant decides to "Fight" or "Acquiesce." The Monopolist decides to "Price War" or "Accommodate." The math shows that if you are going