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Flashcards in Game Theory Deck (8)
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Basic games

Two person game, zero sum
Pure strategy solution and straddle point


Mixed Strategy solutions

2 x n games solved by graphic approach


LP approach

generic m x n game problem


Gain matrix

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


Assumptions of basic game

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


Player A (gain)

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


Player B (loss)

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


Mixed Strategies

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