Introduction to Game Theory - Strategies, Payoffs, and Strategic Thinking

Dive into the fundamentals of Game Theory through this introductory video lecture from Yale University's ECON 159 course. Learn how to organize games into players, strategies, and payoffs, and understand the importance of setting goals before making choices. Explore the concept of prisoners' dilemma, discover why dominated strategies should be avoided, and examine how rational play can sometimes lead to unfavorable outcomes. Investigate real-world applications of prisoners' dilemmas and potential solutions. Compare this with coordination problems to understand how different payoffs can dramatically alter game outcomes. Develop strategic thinking skills by considering not only your own payoffs but also those of others, and learn to predict others' actions by putting yourself in their shoes. The lecture covers key topics including strategy definition, game elements, dominant and dominated strategies, contracts and collusion, and coordination problems, providing a comprehensive foundation for further study in Game Theory.