Lecture 2 - Putting Yourselves into Other People's Shoes

At the start of the lecture, we introduce the “formal ingredients”
of a game: the players, their strategies and their payoffs. Then we
return to the main lessons from last time: not playing a dominated
strategy; and putting ourselves into others’ shoes. We apply these
first to defending the Roman Empire against Hannibal; and then to
picking a number in the game from last time. We learn that, when
you put yourself in someone else’s shoes, you should consider not
only their goals, but also how sophisticated are they (are they
rational?), and how much do they know about you (do they know that
you are rational?). We introduce a new idea: the iterative deletion
of dominated strategies. Finally, we discuss the difference between
something being known and it being commonly known.