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Flashcards in Game Theory Deck (8)
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1

Basic games

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

2

Mixed Strategy solutions

2 x n games solved by graphic approach

3

LP approach

generic m x n game problem

4

Gain matrix

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

5

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

6

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

7

Player B (loss)

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

8

Mixed Strategies

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