GEMATMW - GAME THEORY
Non-cooperative Games
players cannot form alliances and compete in order to gain the best payoff
Imperfect Information
Each player when making decisions is not informed of all the actions done
Perfect Information
Each player when making decisions is perfectly informed of all the actions done
Incomplete Information
Not necessary that the players know the actions taken in the history of the game
Dominant Strategy Equilibrium
Strategies with payoffs no better than those of at least one other strategy, regardless of the choices of other players
Actions
all possible moves of each player
Continuous Games
allow players to choose a strategy from a continuous strategy step
Game
consists of players, actions and payoffs
Simultaneous Game
each player has only one move and it's done simultaneously
Discrete Games
finite number of players or moves
Maximin Solution
involves choosing a strategy that gives you the maximum possible payoff, even when your opponent is able to guess your choice (best of the worst)
Nash Equilibrium
list of strategies with one strategy per player, such that each strategy on the list is the best response to the other strategies on the list
Sequential Game
one player takes a move after another
Cooperative Games
players can form coalitions or form commitments with the goal of sharing their collective payoffs
Game Theory
study of strategic decision-making where situations are called games and the participants are called players
Non-zero Sum Game
sum of the payoffs is not zero
Players
the decision makers - the goal is to get the best game that will result from these decisions
Symmetric Games
the identities of the players can be changed without changing the payoff to the moves
Zero Sum Game
the net effect after gains and losses of both sides are equal to zero
Complete Information
the structure of the game and the payoff of the players are commonly known to all players and each player knows the gains and losses of other players
Payoffs
these are the outcomes in the form of gains or losses of the players depending on their moves