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The purpose of Game Theory is to analyze optimal decision making in the presence of strategic interaction among the players. We start with abstractly defining what we mean by a game. N players. a set of possible strategies for each player: We denote a possible strategy for player i = 1, 2 by si and the set of all possible strategies by Si.
game is a mathematical model of a strategic interaction. We will be studying a wide variety of games, but all of them will have the following common elements. Players. We often think of players as people, but sometimes they model businesses, teams, political parties, countries, etc. Choices.
Examples of descriptive game theory can be found in Biology, Social Sciences, Economics, Computer science etc., whereas prescriptive game theory can help us in the field of Law, medical research or Macroeconomics. Its impact in economics is extremly outstanding, with over seven Nobel prizes given to game theorists.
6 Νοε 2000 · Game theoretic reasoning pervades economic theory and is used widely in other social and behavioral sciences. This book presents the main ideas of game theory and shows how they can be used to understand economic, social, political, and bi-ological phenomena. It assumes no knowledge of economics, political science, or
This book is concerned with the traditional interpretation of game theory. Game theory is divided into two main branches. The first is cooperative game theory, which assumes that the players can communicate, form coalitions and sign binding agreements. Cooperative game theory has been used, for example, to
This section provides the lecture notes for the course, organized by chapter and topic.
Lecture Notes on Game Theory (Revised: July 2012) These lecture notes extend some of the basic ideas in game theory that were covered in 15.010. We will begin by explaining what we mean by rational — or rationalizable — strategies. We will apply this concept to a discussion of the War of Attrition, which can turn out to be a rather ...
