1. Decision Trees and Game Trees

Reading


Central Idea: Use game trees, not decision trees.

Antithesis: Figure out all the probabilities, set up a decision tree, and you'll make the right decision.


Topics For Class Discussion


Important Terms: Players-Actions-Payoffs, Decision Trees vs. Game Trees, First-Mover Advantage, Second-Mover Advantage, Mixed Strategies, Bid-Ask Spread, Tournament.

Additional Material


For Next Time


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