Nash equilibrium: no player benefits from unilaterally deviating. Pure NE: deterministic strategies. Mixed NE: probability distributions. Dominant strategy: best regardless of others. Prisoner's dilemma: defect is dominant, mutual defection is NE. Pareto optimal: no improvement without hurting someone. Social welfare: sum of utilities. Mechanism design: engineer rules to achieve desired outcome. Revelation principle: DSIC mechanisms sufficient. VCG (Vickrey-Clarke-Groves): social welfare...
- game-theory
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- ai