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Chapter 5: Expected Utility

Chapter 5: Expected Utility

pp. 103-134

Authors

, London School of Economics and Political Science
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Summary

In a non-cooperative game, every outcome is associated with a payoff to each player that the player wants to maximize. The payoff represents the player’s preference for the outcome. The games considered so far often have a pure-strategy equilibrium, where the preference applies to deterministic outcomes and is usually straightforward.

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