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