Wie ist die Vorgehensweise bei der maximin rule?
Man sucht in jeder Alternative nach dem schlechtesten (minimalsten) Outcome
Vergleich der Outcomes: Das größte Outcome wird gewählt
Es wird die Alternative gewählt zu der dieses outcome gehört
Which alternative should be picked and why?
theta1
theta2
theta3
theta4
a1
-1
1
3
4
a2
2
a3
a4
0
-3
a3, because a3 state by state dominates all the other alternatives
Wie ist das Vorgehen bei der minimax regret rule
Eine neue Tabelle erstellen. Hier werden die States Theta verglichen
Erste Spalte: Welches ist das beste Outcome. Verglichen mit diesem Outcome: Wie hoch ist der Regret (positive Zahlen)
Dann wird pro Alternative der höchste Regret verglichen
von denen nehmen wir den kleinsten Wert und entscheiden uns für diese Alternative
What does First order Stochastic Dominance mean (in words and how would it look graphically?
if the cdf (cumulative distribution function) of X is always smaller or equal than the cdf of Y, and if for one X the cdf is smaller than the cdf of Y, then X first order stochastically dominates Y
graphically, F(X) must be always be below or equal F(Y)
What does State by State Dominance imply?
First order stochastic dominance
Second order stochastic dominance
What does FSD imply?
If X FSD Y, then E(X) > E(Y)
SSD
What is equivilent to FSD?
if XFSDY, then
Eu(X) > Eu(Y)
If alternative 1 has a higher Expected value than Alternative 2 (E(a1)>E(a2)), does that mean that 1 FSD 2?
True or false?
If B is a mean-preserving spread of A, with B=A+Z and E(Z)=0, then B SSD A
True or false
If A FSD B, then only risk-averse decision-makers will prefer A over B
How must the following statement be changed, so that it is true?
either:
SSD instead of FSD, or
decision makers with a increasing utility function instead of risk averse dm
What does A is a mean preserving spread of B mean
it means, that A and B have the same expected value (e.g. E(A)=E(B)=5 )
then for A you get 5 100%
fo B you get 3 50% and 7 50%
When is a Nash Equilibrium reached?
if no player can improve by deviating unilaterally to another strategy
Can a strictly dominated strategy be part of a NE?
How many subgames does a dynamic game have? (Assumption: perfect information)
it as as many subgames as it has nodes (excluding ending nodes)
Last changed2 years ago