Games And Strategy

Question 1

Game

Answer 1

“A stylised network that depicts situations of strategic behaviour, where the payoff for one agent depends on its own actions as well as the actions of other agents”

This introduces important considerations, where an actions optimal strategy depends on the conjecture of what another player will do.

Therefore each players payoff is a function of the strategic choice by both players.

Question 2

Normal form and extensive form

Answer 2

The ways of depicting a game.

Question 3

Dominant strategies, dominated strategies and Nash equilibrium

Answer 3

Dominant strategy = where a player has a strategy that is better than any other strategy regardless of the other player’s choice of strategy.

Dominated strategy = one whose payoff is inferior to that or another strategy, regardless of what the other player does.