GT Written Assignment 1

I’m trying to study for my Business course and I need some help to understand this question.

Answer the following questions. Each of your answers should be an essay of 250 to 350 words (with a typical font and spacing this will be about 1 to 1-1/2 pages).

1. In the movie The Princess Bride, the outlaw Vizzini is offered two goblets of wine and must determine which one holds the poison. He begins by saying: “Now, a clever man would put the poison into his own goblet because he would know that only a great fool would reach for what he was given. I am not a great fool, so I can clearly not choose the wine in front of you. But you must have known I was not a great fool—you would have counted on it—so I can clearly not choose the wine in front of me.” This situation includes all the four elements of a game as described by Professor Stevens. Identify and describe those four elements (including common knowledge), and relate them to this game.
2. The definition of strategy used in game theory specifies how a player will react in every situation, even situations that will not come to pass when the game is actually played. Consider the proposition that when you choose to do often depends on the consequences that would result if you chose to do something else—in other words, your choice is dependent upon elements that never occur. Describe and discuss at least two situations in your personal experience in which this was the case.

https://www.youtube.com/watch?v=_2sHRJlJrh8

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