Lecture 1 Flashcards
Any social problem can be formalized as a “game” which consists of which three elements?
players, strategies, and payoffs
Game Theory is defined as?
The Study of Mathematical models of conflict and cooperation between intelligent and rational decision makers
Who established the solution concept?
John Nash: Nash Equilibrium
What is the Nash Equilibrium
no one can benefit if they unilaterally change their action (the solution always exists)
Who are the three fathers of Game Theory?
Harsanyi, Nash, Selton
Outcomes depend on more than
one player’s decision
The decisions of one player cannot be separated from
those of others
What is the definition of Game Theory proposed by Myerson?
The study of mathematical models of conflict and cooperation between intelligent rational decision-makers
The rules of the game have to specify four things?
who, what, when, and how much
how much are the players in a game supposed to know about the rules?
common knowledge.
The extensive form of a game is a complete description of?
players, what players move when, who moves when and their choices, players payoffs as functions of choices
The normal or strategic form of a game is specified by three objects
set of strategies available to each player, the payoffs associated with any strategy combo, and the list of players
