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Unformatted text preview: and is backed up only by trust and not any enforceable agreement Dominant strategy is a strategy that is preferred by a player regardless of the opponents move. Nash equilibrium is a set of strategies for each player in the game in which no player can improve his or her payoff by changing strategy unilaterally Informal game theory is often called behavioral game theory because it relies on empirical observation not deductive logic alone, to determine choice s of individuals. o How people actually think Survival example complexities in human nature Vikrey auction complications in setting up the second price auction Money trust example choosing to trust the opposition in order to gain benefits for both Framing effects tendency of people base their choices on how the choice is presented....
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