Game Theory Flashcards
What is the definition of game theory?
Game theory studies strategic interactions among rational decision-makers, each aiming to maximize their utility.
Who are the players in game theory?
Players are individuals or entities making decisions.
What are strategies in game theory?
Strategies are plans or actions available to players.
What are payoffs in game theory?
Payoffs are rewards or penalties received based on chosen strategies.
What types of games are there in game theory?
Games can be cooperative (players form coalitions) or non-cooperative (each player acts independently).
What are the elements of a game?
The elements of a game include a set of players, a set of actions or strategies, and a payoff or utility over outcomes for each player.
What assumptions are made for games in game theory?
Assumptions include that the payoff is the motivation for the player and that there is no continuation for the game.
What is the difference between simultaneous and sequential games?
In simultaneous games, players choose actions without knowing the others’ choices (e.g., Prisoner’s Dilemma). In sequential games, players make decisions one after another, with knowledge of previous actions (e.g., chess).
What is a zero-sum game?
In zero-sum games, one player’s gain is exactly another’s loss.
What is a non-zero-sum game?
In non-zero-sum games, players’ interests are not completely opposed; cooperation may be possible.
What is a dominant strategy?
A dominant strategy is a strategy that yields the highest payoff for a player, no matter what the others do.
What is Nash Equilibrium?
Nash Equilibrium is a situation where no player can improve their payoff by unilaterally changing their strategy.
What is the difference between mixed and pure strategies?
A pure strategy is when a player consistently chooses one action, while a mixed strategy involves randomizing over multiple actions, assigning probabilities to them.
What is IESDS?
IESDS is a technique for solving games that involves iteratively removing dominated strategies.
What is the Prisoner’s Dilemma?
In the Prisoner’s Dilemma, two individuals can either cooperate or betray each other, with betrayal being the dominant strategy.
What is the Battle of the Sexes?
In the Battle of the Sexes, two players prefer different outcomes but would rather coordinate than end up with no coordination.
What is Matching Pennies?
Matching Pennies is a zero-sum game where one player’s gain is the other’s loss, with no pure strategy equilibrium but a mixed strategy equilibrium existing.
What is the normal (strategic) form of a game?
The normal form describes games through a matrix showing the payoffs for each strategy combination, useful for simultaneous games.
What is the extensive form of a game?
The extensive form is a tree diagram that captures the order of moves in sequential games, highlighting decision points and possible strategies.
What is Pareto Optimality?
Pareto Optimality is a situation where no player can be made better off without making another player worse off.
What is Subgame Perfect Equilibrium?
Subgame Perfect Equilibrium is relevant in sequential games and refines Nash equilibrium by ensuring strategies form a Nash equilibrium in every subgame.
What is a minimax strategy?
In zero-sum games, a minimax strategy is where a player minimizes their maximum possible loss.
What is backward induction?
Backward induction is used in sequential games, where players start from the end of the game and reason backward to determine optimal strategies.
What is a perfect information game?
It is a game in which players move sequentially,
and know the full history of play when it is their turn to move
