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The above-mentioned function calculates the difference between payoff (profit) in the current situation and the maximal possible payoff for each producer.
In other words, this variable indicates how much money is at risk when a decision maker tries (unsuccessfully) to reach his maximal possible payoff instead of playing Nash.
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(3) An optimistic type chooses the strategy that maximizes the maximum possible payoff, thus ignoring the incentives of the opponent player.
Their modal type is a non-strategic optimistic type (which chooses the strategy that maximizes the maximum possible payoff, thus implicitly assuming that the opponent plays randomly).
It calculates the sum of differences between values of payoff obtained in the current configuration with maximal possible value of payoff for each producer.
By linking vehicles and highways together, one possible payoff would be a concept known as "platooning," which involves driving cars almost bumper-to-bumper.
A lottery ticket costs a dollar and has a possible payoff of $10 million but an expected payoff of 50 cents.
If C k = R k,, earns the highest possible payoff.
Obviously, each player tries to get the highest possible payoff.
This is a plausible end since both players earn their own highest possible payoff.
Therefore, every coalition is allowed to earn the highest possible payoff.■.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com