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Game Theory 101 (#30.5): Establishing Causation
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Game Theory 101 Full Course - Game Theory 101 (#30.5): Establishing Causation

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Game Theory 101: The Complete Textbook on Amazon: https://www.amazon.com/Game-Theory-101-Complete-Textbook/dp/1492728152/ http://gametheory101.com/courses/game-theory-101/ Game theory logically maps inputs into outputs. This allows us to cleanly establish causal relationships. For example, if the equilibrium strategies of a war game with high costs lead to peace but the equilibrium strategies of that exact same game but with low costs lead to war, then we know that lower costs have caused war. Comparative statics is a method that allows us to do this more generally in games, and the explanation of that method is in the next lecture.

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