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MORE THAN A GAME.

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DO YOU HAVE A GOOD STRATEGY?


THE BAKER’S DILEMMA


THE TRAGEDY OF THE LOAVES

The Baker’s Dilemma is a multiplayer game that is played over multiple rounds.
Here you can play any of the game’s six different levels (or models) where each
one requires a different strategy to maximise your payoff.

Like most games in game theory, the model is given as a story – in this case, a
baker trying to decide how many loaves to bake in order to make the most money
(also known as the “payoff”).

In the game, you are a baker in a consortium of bakers who have together agreed
that every day they will each produce a standard batch of 100 loaves in the
expectation that they will sell for $1 each.

Each round of the game represents a day’s production. All the loaves produced by
the bakers will be sold and all at the same price – though it will not
necessarily be $1.

Not all of the bakers are content to cooperate in producing only this standard
batch of loaves and that is where the problems – and the dilemmas – start.


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