Game Theory Flashcards
1
Q
What is a zero-sum Game?
A
In a zero-sum game between two players, if player 1 wins a certain amount, then player 2 loses that amount
2
Q
What is a pay-off matrix?
A
The pay-off matrix shows the possible gains from player 1’s point of view
3
Q
What is a play-safe strategy?
A
A play safe strategy is where a player chooses the option with the smallest downside
4
Q
What is a stable solution?
A
A stable solution exists when it is in both players’ interest to adopt the play-safe strategy. This occurs when the maximum of the row minima equal the minimum of the column maxima
