Game Theory (Applications (Biology, Computer science, Economics,…
Red / Blue
Split or steal of Golden Balls
The prisonors dilemma
Serving or receiving in tennis
payoffs : What are their incentives?
Information : What do they know?
Strategies : what are their options?
Rationality : How do they think?
Players : who is interaction?
Zero sum or non - zero sum
Simultaneous and Sequential
Cooperative or non-Cooperative
Perfect information and imperfect information
Finite and infinite strategies
1944 : Theory of Games and Economics Behaviour by Morgenstern and Von Neumann
1950 : John Nash invents concept of Nash eqilibrium
1928 : Von Neumann wrote a key paper in the year of 1928
A game may have Multiple nash Equilibrium or non at all
Each players strategy is optimal when considering the decisions of other players.
named after its inventor, john nash, an american equlibrium