game theory

introduction

functions

history

applications

find the optimal outcome from a set of choices by analyzing the costs and benefits to each independent party as they compete with each other

explores the possible outcomes of a situation in which two or more competing parties look for the course of action that best benefits them

No variables are left to chance, so each possible outcome is derived from the combinations of simultaneous actions by each party

1913

Ernst Zermelo published (On an Application of Set Theory to the Theory of the Game of Chess)

1938

Frederik Zeuthen proved that the mathematical model had a winning strategy by using Brouwer's fixed point theorem

1928

John von Neumann published a paper

1944

Theory of Games and Economic Behavior was followed

1965

Reinhard Selten introduced his solution concept of subgame perfect equilibria

1970

game theory was extensively applied in biology

2005

Thomas Schelling and Robert Aumann followed Nash, Selten and Harsanyi as Nobel Laureates

2007

Leonid Hurwicz, Eric Maskin and Roger Myerson were awarded the Nobel Prize in Economics

2012

Alvin E. Roth and Lloyd S. Shapley were awarded the Nobel Prize in Economics

game types

Symmetric / Asymmetric Games

Cooperative / Non-cooperative

Normal Form and Extensive Form Games

Simultaneous Move Games and Sequential Move Games

Constant Sum, Zero Sum, and Non-Zero Sum Games

Description and modeling

Prescriptive or normative analysis

Economics and business

Political science

Biology

Artificial Intelligence

list of theories

Prisoner's dilemma

Nash equilibrium

zero sum equilibrium

process of modeling the strategic interaction between two or more players in a situation containing set rules and outcomes

key elements in game

players

strategies

timing of decisions

payoffs

information