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.