Game Theory Flashcards
Study of FINDING AN OPTIMAL POLICY when OUR POLICY DEPENDS ON THE OPPONENTS OPLICY
Game theory
Prisoner’s dilemma is what type of game
Game wherein players are SIMULTANEOUSLY and ENVIRONMENT IS PARTIALLY OBSERVABLE
Two problems that game theory tries to solve
Agent design
Mechanism design
Given a game, find the OPTIMAL POLICY for the AGENT
Agent design
Given the utility functions, what is the POLICY THAT MAXIMIZES THE GLOBAL UTILITY
Mechanism design
Outcome that all players prefer over all others
Pareto optimal outcome
Action where the player DOES better NO MATTER WHAT THE OTHER
The ACTION WE WANT because we DOMINATE ALL ACTIONS OF THE OPPONENT
The RATIONAL CHOICE since this will give you the upper hand
Dominant strategy
Outcome where no player can benefit BY SWITCHING STRATEGIES given that the other player sticks with the same strategy
Outcome of taking the DOMINANT STRATEGY
Equilibrium / nash equilibrium
Strategy where player always chooses the same action
A strategy used when you are able to find an action that is the BEST MOVE no matter what the opponent does
Eg: prisoner’s dilemma
Pure strategy
Strategy where player chooses an action based on the probability distribution that covers all the possible actions
Eg: two finger morra
Mixed strategy
