Measurement of preferences rather than ordinal measurement

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1. Why, as game theorists, do we want to obtain an interval measurement of preferences rather than an ordinal measurement? In particular, what does an interval measurement allow us to do that an ordinal measurement doesn’t? Are there any limitations on interval measurements? Be specific. An interval measurement gives us a better insight on how to compare different

2. What is the difference between decisions under risk and decisions under certainty? What significance does this have for the relevant decision principles for a given game? If a decision principle used for games under uncertainty is applied to a game under risk and it contradicts the decision principle normally used for games under risk, which decision principle should be used, and why? Give an example.

3. Name the two types of irrational actions and explain what they are. Give an example of each. What relevance do irrationalities have for game theory?

Reference no: EM131085862

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