Game theory
Introduction
the study of mathematical models of conflict and cooperation between intelligent rational decision-makers
Types of Game
Single Move Games
Repeated Games
Sequential Games
player take the single action without knowing the action of any other participant.
multiple players with same choice for multiple times
this games produces a series of turn
Game theory roles
Participant Design
Mechanism Design
To obtain the maximum utility.
Inverse game theory focus on designing a game for a group of intelligent participant.
Theories
Nash Equilibrium
Inversed Game Theory
Nash Equilibrium theory proves that every game can achieve a point on which no player can benefit from switching strategy assuming than the other players stay with their current strategy. That state is known as Equilibrium.
the problem is not to optimize the participant’s strategy on a game but to design a game around the behavior of rational participants. this is the role of inversed game theory.
Basic terms
Game: dependent on the actions of two of more decision-makers (players)
Players: A strategic decision-maker
Strategy: A complete plan of action a player will take given the set of circumstances
Payoff: The payout a player receives from arriving at a particular outcome.
Information set: The information available at a given point in the game.
Equilibrium: The point in a game where both players have made their decisions and an outcome is reached.