Game Theory 101: Iterated Elimination of Strictly Dominated Strategies

🔑 Iterated elimination of strictly dominated strategies is a concept in game theory.

🔍 In the Prisoner's Dilemma, confessing is a strictly dominated strategy.

🔄 Players may change their strategies based on what the other player is doing.

🎯 In game theory, players often have different strategies, but sometimes there is a dominant strategy that is always the best choice regardless of what the other player does.

🔍 When there is no dominant strategy, we can use the concept of Iterated Elimination of Strictly Dominated Strategies to simplify the game and identify the best strategies for each player.

🔀 In a more complex game with multiple strategies, the best strategy for a player depends on the chosen strategy of the other player, leading to different outcomes.

🔑 Player 1 adapts their strategy based on Player 2's moves.

🧠 To solve the game, we analyze Player 2's strategies.

❌ Playing 'Right' is never beneficial for Player 2.

🔑 Player 2 should always play 'Center' because it yields a higher payoff than any other strategy.

🔑 Player 1 should ignore 'Right' and focus on a smaller game with only two strategies when considering their move.

🔑 Player 2's decision to never play 'Right' has implications for Player 1's strategy.

⚡ By iteratively eliminating strictly dominated strategies, we can simplify and focus on the optimal choices in a game.

🧠 Player 2's intelligence and knowledge of Player 1's intelligence help determine the optimal strategies.

🤔 Analyzing the game and smaller games allows for the identification of the best strategies.

🔑 The key idea is to eliminate strategies that are always worse than others.

🤔 Player 2's optimal strategy is to always play 'Center'.

⚖️ Player 1's optimal strategy is to play 'Middle' and they both get 3 points each.

🔑 The video discusses the concept of Iterated Elimination of Strictly Dominated Strategies (IESDS).

🔄 IESDS involves a process of eliminating strategies that are strictly dominated by others.

🧩 Through IESDS, players can infer and eliminate strategies based on the intelligence of other players.

✅ In game theory, if a strategy is strictly dominated, it should be eliminated immediately.

❗ The order of eliminating strictly dominated strategies doesn't matter, as the other strategies will also be strictly dominated.

🔀 Using the Iterated Elimination of Strictly Dominated Strategies (IESDS) can lead to a single outcome in a game.

🎯 Iterated Elimination of Strictly Dominated Strategies guarantees a single outcome.

⛔ Most games cannot be solved using Iterated Elimination of Strictly Dominated Strategies.

🔍 The next video will discuss solving games without dominated strategies using 'Stag Hunt' and 'Pure Strategy - Nash Equilibrium'.