Uploaded September 2021 | Updated September 2026, 1 week ago
I explain collective action games and multi-player Prisoner’s Dilemmas. I relate these to public goods, the tragedy of the commons, and drop-in-the-bucket problems. There is also a discussion of stable and unstable equilibrium in multi-player games.
0:00 - Overview
0:36 - Real-World Situations
1:16 - Starting with 2x2 Prisoner's Dilemma
4:05 - Goal: Changing the Payoffs
6:07 - Public Good / Tragedy of the Commons
6:52 - Building Objective Function
7:49 - Drop-in-the-Bucket
8:57 - Functional Form
10:27 - Adding Uncertainty
11:18 - Multi-player Nash Equilibrium
17:09 - Stability of Equilibrium
18:00 - Take-Aways from Exercise
19:07 - Multi-Player Prisoner's Dilemma
19:44 - How do you Address Collective Action Problems?
Solving for Nash Equilibrium: youtu.be/6rs_EQpxTI4
The numbers in the multi-player Nash Equilibrium Example come from the following video, which is posted on an excellent game theory channel... youtu.be/IOUG-aREruo
I explain collective action games and multi-player Prisoner’s Dilemmas. I relate these to public goods, the tragedy of the commons, and drop-in-the-bucket problems. There is also a discussion of stable and unstable equilibrium in multi-player games.
0:00 - Overview
0:36 - Real-World Situations
1:16 - Starting with 2x2 Prisoner's Dilemma
4:05 - Goal: Changing the Payoffs
6:07 - Public Good / Tragedy of the Commons
6:52 - Building Objective Function
7:49 - Drop-in-the-Bucket
8:57 - Functional Form
10:27 - Adding Uncertainty
11:18 - Multi-player Nash Equilibrium
17:09 - Stability of Equilibrium
18:00 - Take-Aways from Exercise
19:07 - Multi-Player Prisoner's Dilemma
19:44 - How do you Address Collective Action Problems?
Solving for Nash Equilibrium: youtu.be/6rs_EQpxTI4
The numbers in the multi-player Nash Equilibrium Example come from the following video, which is posted on an excellent game theory channel... youtu.be/IOUG-aREruo
