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Course: Insights from Game Theory into Social Behavior Instructors: Moshe Hoffman, Erez Yoeli TAs: Zoe Hitzig, Maxim Massenkoff, Jason Nemirow 1

Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

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Page 1: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Course:

Insights from Game Theory into Social Behavior

Instructors:

Moshe Hoffman, Erez Yoeli

TAs:

Zoe Hitzig, Maxim Massenkoff, Jason Nemirow

1

Page 2: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Let’s discuss some puzzles of social behavior…

2

Page 3: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Puzzle 1:

Norm against Chemical Weapons

See The Oatmeal comic about chemical weapons.

3

Page 4: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Why were chemical weapons the red line?

Why not 100,000 deaths?

Why not wanton murder of civilians?

4

Page 5: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

This norm reared its head many times before…

5

Page 6: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

“These flamethrowers were used to kill Japanese holed into pillboxes, buildings and caves. “ -Wiki entry for Battle of Iwo Jima

Image is in the public domain.

6

Page 7: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Why flame throwers?

“A strong military case was made for the use of gas before America’s attack on the island of Iwo Jima; Japanese defenders in caves and tunnels would have been particularly vulnerable. Franklin Roosevelt rejected the idea.”

-The Economist, The History of Chemical Weapons

7

Page 8: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

>26,000 American casualties, Iwo Jima, WWII

Image is in the public domain.

8

Page 9: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

“Because all the civilians had been evacuated, there were no civilian casualties at Iwo Jima”

9

Page 10: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Video Clip: Japanese Soldier Burnt Alive by Flame Thrower

Note: This video contains content that is not suitable for all ages. You must be 18 years and over to view the content.

10

Page 11: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

More humane than chemical weapon?

11

Page 12: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Thus,

-Chemical weapons would have saved lives!

-No civilian casualties either way!

-Not obviously “more humane”

12

Page 13: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

In general:

1) Where do such inefficient norms come from?

2) What types of norms occur?

13

Page 14: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Puzzle 2:

Apologies

14

Page 15: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Salala Pakistan, Nov 26 2011: US accidentally killed 24 Pakistani Soldiers

Image is in the public domain.

15

Page 16: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Pakistan closed supply routes, until we apologized

Image removed to copyright restrictions.

View a map of NATO supply routes through Pakistan.

16

Page 17: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

~$1 billion in extra shipping fees

Image courtesy of DayLove on Flickr. CC BY-NC-SA

17

Page 18: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Until July 3 2012

“We are sorry for the losses suffered by the Pakistani military”

-Hilary Clinton

18

Page 19: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Immediately after…

“…the ground supply lines into Afghanistan are opening”

19

Page 20: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Why wouldn’t US just say sorry?

-mere words?

-worth a billion?

Why would Pakistan care?

-wouldn’t US “fake it”?

20

Page 21: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

More generally:

1) Why do mere words matter?

2) When do mere words matter?

3) What about other symbolic actions (e.g. coronations, graduations, handshakes, etc)?

21

Page 22: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Puzzle 3:

Why do we consider transgressions of commission worse than those of ommission?

22

Page 24: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Notice:

-Batman’s intention is the same

-The outcome is the same

-But Batman (and presumably the viewer) thinks omission less bad

24

Page 25: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

1) Why is omission viewed differently from commision?

2) Is this distinction something we should legally respect or overcome?

25

Page 26: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

More generally:

1) Where do our moral intuitions come from?

2) Do they make a good basis for law?

26

Page 27: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Puzzle 4:

Where do “rights“ come from?

27

Page 28: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Self evident? The creator?

“We hold these truths to be self-evident, that all men are created

equal, that they are endowed by their Creator with certain unalienable

Rights…”

28

Page 29: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Might?

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Page 30: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

The “state of nature”?

Image is in the public domain.

30

Page 31: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

A “social contract”?

Images are in the public domain. 31

Page 32: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

What does this mean?

Where DO rights come from?

32

Page 33: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Puzzle 5:

Why do we speak indirectly?

33

Page 34: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

"So maybe the best thing to do would be to take care of that right here in Brainerd"

34

Page 35: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

1) Did this line introduce any doubt as to whether a bribe was offered?

2) Would a good cop be any less likely than a corrupt cop to “get it”?

3) Was the goal to prevent “proof” that a bribe was offered?

35

Page 36: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

More generally,

1) Why do we communicate in this inefficient way?

2) When is it important to do so?

36

Page 37: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

In this class…

We will explain such puzzles using game theory

37

Page 38: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

In this class…

We will explain such puzzles using game theory

38

Page 39: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

What is game theory?

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Page 40: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

5, 6 8, 4

3, 2 0, -3

U

D

L R

The simplest “game” can be represented by the following “payoff matrix”

40

Page 41: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

5,6 8, 4

3, 2 0, -3

U

D

L R

Player 1 chooses between two actions

41

Page 42: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

5, 6 8, 4

3, 2 0, -3

U

D

L R Player 2 simultaneously chooses between 2 actions

42

Page 43: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

5, 6 8, 4

3, 2 0, -3

U

D

L R

The payoffs to player 1 are determined by her action as well as the action of player 2

43

Page 44: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

5, 6 8, 4

3, 2 0, -3

U

D

L R

The payoffs to player 2 are determined by her action as well as the action of player 2

44

Page 45: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

5, 6 8, 4

3, 2 0, -3

U

D

L R

This game can be “solved” by finding the “Nash equilibria”

45

Page 46: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

5, 6 8, 4

3, 2 0, -3

U

D

L R

(U, L) is a Nash Equilibrium b/c neither can benefit by unilaterally deviating

46

Page 47: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

“Prediction” of game theory:

If both “expected” (U,L), both would play (U,L)!

(Nash is “self enforcing”)

47

Page 48: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

5, 6 8, 4

3, 2 0, -3

U

D

L R

(U,R) is NOT a Nash Equilibrium b/c 2 can benefit by unilaterally deviating to L

48

Page 49: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Game theory “predicts”:

If both expected (U,R), player 2 would deviate!

(I.e. if not Nash, cannot be “stable”)

49

Page 50: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Nash makes sense (arguably) if…

-Uber-rational

-Calculating

50

Page 51: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Such as Auctions…

51

Page 53: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

But why would game theory matter for our puzzles?

53

Page 54: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Norms/rights/morality are not chosen; rather…

We believe we have rights!

We feel batman would be worse if he killed

54

Page 55: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

We use an innuendo because it feels awkward to explicitly say inappropriate.

Apologies matter because recipients feel nice when they hear them

55

Page 56: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

But…

From where do these feelings/beliefs come?

56

Page 57: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Our thesis (in a few steps):

57

Page 58: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Thesis:

Feelings/beliefs that “do better” become “more frequent”

58

Page 59: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Thesis:

Feelings/beliefs that “do better” become “more frequent”

Because of “evolution”

(people with certain beliefs or preferences die out?)

59

Page 60: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Thesis:

Feelings/beliefs that “do better” become “more frequent”

Because of “selective imitation”

(people with certain beliefs or preferences are more likely to be imitated?)

60

Page 61: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Thesis:

Feelings/beliefs that “do better” become “more frequent”

Because of “reinforcement learning”

(certain beliefs or preferences are held onto more tenaciously?)

61

Page 62: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Thesis: Feelings/beliefs that do better become more frequent behavior ends up consistent with Nash (o.w. feelings/beliefs would change!) (even though not conscious of Nash, or of where feelings come from)

62

Page 63: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Thesis: Feelings/beliefs that do better become more frequent behavior ends up consistent with Nash (o.w. feelings/beliefs would change!) (even though not conscious of Nash, or of where feelings come from)

63

Page 64: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Thesis: Feelings/beliefs that do better become more frequent behavior ends up consistent with Nash (o.w. feelings/beliefs would change!) (even though not aware of game, or of where feelings/beliefs come from)

64

Page 65: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

In detail…

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What is the key assumption in evolution, imitation, reinforcement learning?

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Page 67: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

T=0 T=1

Evolution

More successful traits reproduce faster

67

Page 68: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

T=0 T=1

Selective Imitation

More successful traits more likely to be imitated

68

Page 69: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

T=0 T=1

Reinforcement Learning

More successful behaviors held more tenaciously

69

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All 3 processes “optimal behaviors”!

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T=0 T=1 T=2 T=3

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Page 72: Course: Insights from Game Theory into Social Behavior … · Course: Insights from Game Theory into Social Behavior . Instructors: Moshe Hoffman, Erez Yoeli . TAs: Zoe Hitzig, Maxim

Also true in a game…

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T=0 T=1

L

L

L L

L

L

L

R

R R

R R

R R

L L

More successful strategies become more frequent

73

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T=0 T=1 T=2 T=3

L

L

L

L L

L

L

L

R

R R

R R

R R

L

L

L

L L

L

L

L

R

R L

R R

L L

L

L

And eventually take over…

74

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What if beliefs/feelings are being

learned/evolving instead of “strategies”?

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Suppose BL is belief that causes action L to be taken

76

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T=0 T=1

BL

BL

BL

BL BL

BL

BL

BL

BR

BR BR

BR BR

BR BR

BL

Feelings/beliefs that do better become more frequent

77

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T=0 T=1 T=2 T=3

BL

BL

BL

BL BL

BL

BL

BL

BR

BR BR

BR BR

BR BR

BL

BL

BL

BL BL

BL

BL

BL

BL

BR BL

BR BR

BL BL

BL

BL

Behavior ends up consistent with Nash

(even though not conscious of Nash, or of where feelings come from) 78

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14.11 Insights from Game Theory into Social BehaviorFall 2013

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