Lotteries

This lecture covers game theoretical lotteries, support of lotteries, and degenerate lotteries, showing why we need to cover preferences over lotteries to be able sensibly solve our games.

Takeaway Points:

  1. A lottery is a probability distribution over outcomes.
  2. Something is in the support of a lottery if there is positive probability of it occuring.
  3. A degerenate lottery is a lottery where a single event occurs with probability 1; that is, a single event is guaranteed to happen. Thus, our discussion of deterministic events is also a discussion of degenerate lotteries.