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B20 A SMALL STEP SIDEWAYS

Value a choice and its later consequences

A food truck can play it safe or gamble on a festival crowd, and a rival truck is choosing too. Weigh uncertain payoffs, value future days, and find where a price war settles.

LESSON OVERVIEW12 min lesson

Lesson overview

A food truck can play it safe or gamble on a festival crowd, and a rival truck is choosing too. Weigh uncertain payoffs, value future days, and find where a price war settles.

What you’ll explore

  • Compute expected values and discounted returns, work a value backward one step at a time, and find the Nash equilibria of a small payoff table.
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Original explanations, connected to the research.

Artificial Intelligence: A Modern Approach — authors’ materials
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