A short clip talking about how to understand the concepts of outcomes, payoffs and preferences used in game theory (decision theory too). We typically use numbers like 1,2 3....4 to represent preferences - the numbers aren't the preferences they just "represent" the preferences. But what does this mean, and why is it important? Well it IS important because whenever numbers are used people like to ad subtract multiply compare...not thinking about what this means (or doesn't mean) about the underlying attributes the numbers are representing. Think of it like 6 bananas and 4 textbooks makes 10 ....something? and because 6 is greater than 4, well 50% more, 2 units more, is there more or less "value" in bananas than in textbooks? This clip steps through some common issues associated with the preference concept as we meet it in games of complete information. Once we bring in uncertainty and attitudes towards risk or ambiguity......understanding what payoff numbers mean gets even trickier!