Game theory -- 6th June 2011

wherever we go, there will be a co-operation exist within number of ppl greater than one.
in the game theory,

co-operation involves

1) partners

2) competitors

and each one is inter-dependence in the co-operation

and  thinking the outcome of negotiation as a joint of action

controversially, the non-cooperative frame work treats all of the agents' actions as individual actions.

bear in mind, the conflict and co-operation are over-lap



there are three major tensions:

1) the conflict between individual and group interests
2) strategic uncertainty
3) the specter of inefficient co-ordination

Strategy --example one -- Prisoner Dilemma

reccommend book
" Strategy --by Joel Watson"

1st to highlgiht is
This is not a Divinity School, rather like a Business School


lesson 1: Do not play a strictly dominated strategy.
lesson 2: rational choice can lead to outcomes " SUCK"

how to solve the Prisoner Dilemma's case

• repetition
• communication?

Economic History Lesson One --by xiao fei shi

in 1971, Nixon took us off gold standard, the US dollar died because it was no longer money, it is now what we called" currency"

in 2001,the US dollar has lost 13.2% of its purchasing power since George W Bush took office... wt a bullshit...

in 2008, the first 78 million baby boomers begin to reire $74trillion owed to retires by US government it more than all the money available in all the world's stock market.  ($10 trillion for social security, $64 trillion for medicare)
that why we seeing the gov try to delay the retired age all years around.... ~~~


now, it seens that

the saver become the loser
the debtor become the winner