Game Theory Flashcards Preview

Decision Making > Game Theory > Flashcards

Flashcards in Game Theory Deck (8)
Loading flashcards...
1
Q

Basic games

A

Two person game, zero sum

Pure strategy solution and straddle point

2
Q

Mixed Strategy solutions

A

2 x n games solved by graphic approach

3
Q

LP approach

A

generic m x n game problem

4
Q

Gain matrix

A

A is on the left, B is on the top
Gain for A for each strategy
Loss for B for each strategy

5
Q

Assumptions of basic game

A

The entire matrix is known in advance by both
Both players are rational and risk averse (try to avoid losses)
No mutual gain/loss - zero sum
Strategies are given in secret

6
Q

Player A (gain)

A

Maximin Criterion
Pessimistic view: whatever strategy A plays, believes B will play strategy so that As gain will be minimised
Avoid getting the worst case

7
Q

Player B (loss)

A

Minimax Criterion

Pessimistic view: whatever strategy B plays, believes A will play strategy so that Bs loss will be maximised

8
Q

Mixed Strategies

A

Used when no saddle point exists
Introduces the probability of each strategy
Ultimate goals still the same but now a function