In: Economics
b) In John Grisham’s novel, “A Painted House”, the 7-year old Luke has the following thoughts: ..”If I told him about Hank, I knew exactly what would happen. He’d march me down the front yard and we’d have a confrontation… Hank would misjudge his opponent, and before long the stick would come into play….And we’d be left short-handed. I’d be expected to pick even more cotton. So I didn’t say a word.” Luke understands the need to choose the best strategy (in our class context, Game Theory), since he’d like to avoid doing more arduous labor than would otherwise be required of him. As a young child, you probably went through a similar train of thought that led you not to do something that would have been the morally correct thing to do. Give one example.
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This is an example of choosing the best strategy given the outcomes of each strategy . When there are two players in a game , each tries to choose their best strategy keeping in mind the other player's choice . So they reach a Nash Equilibrium .
Another example of such a situation is : A boy decides not to tell his teacher that he did not complete his homework . His teacher may ask for his copy or may not . There is a chance that the teacher might forget that he had given some homework . The boy should have admitted himself that he did not do the task given to him to be morally correct . But instead he chooses to kept quite and save himself from punishment . This example shows the choice of best strategy based on outcomes of each strategy . Suppose we assume that the teacher had really forgotten about the task he had given . Keeping this in mind not admitting fetches the student more preferable outcome than admitting .