Please enable JavaScript.
Coggle requires JavaScript to display documents.
Game Theory - Coggle Diagram
Game Theory
-
-
Form Of games
Extensive In game theory, an extensive-form game is a specification of a game allowing (as the name suggests) for the explicit representation of a number of key aspects, like the sequencing of players' possible moves, their choices at every decision point, the (possibly imperfect) information each player has about the other player's moves when they make a decision, and their payoffs for all possible game outcomes. 
Normal In game theory, normal form is a description of a game. Unlike extensive form, normal-form representations are not graphical per se, but rather represent the game by way of a matrix. While this approach can be of greater use in identifying strictly dominated strategies and Nash equilibria, some information is lost as compared to extensive-form representations. The normal-form representation of a game includes all perceptible and conceivable strategies, and their corresponding payoffs, for each player.
Game Theory :
Game theory is the study of how and why individuals and entities (called players) make decisions about their situations. It is a theoretical framework for conceiving social scenarios among competing players.
Key Takeaways
:
-
The intention of game theory is to produce optimal decision-making of independent and competing actors in a strategic setting.
Using game theory, real-world scenarios for such situations as pricing competition and product releases (and many more) can be laid out and their outcomes predicted.
-
Different types of game theory include cooperative/non-cooperative, zero-sum/non-zero-sum, and simultaneous/sequential.
1950 John Forbes Nash
The Nash Equilibrium Nash equilibrium is a concept in game theory where the game reaches an optimal outcome. This is a state that gives individual players no incentive to deviate from their initial strategy. The players know their opponent’s strategy and still will not deviate from their initial chosen strategies because it remains the optimal strategy for each player.
Mixed strategy Nash Equilibrium
A mixed strategy Nash Equilibrium is a steady state of a game where players probabilistically choose pure strategies such that no one can gain from unilateral deviation.
Key Takeaways
A mixed strategy Nash equilibrium involves at least one player playing a randomized strategy and no player being able to increase his or her expected payoff by playing an alternate strategy.
-
If a player is supposed to randomize over two strategies, then both must produce the same expected payoff.
-
-
The game of chicken is similar to the battle of the sexes and, like it, has two pure strategies and one mixed strategy.
2/3 Guessing game
In this game, players simultaneously select a real number between 1 and 100, inclusive. The winner of the game is the player(s) who select a number closest to 2/3 of the average of numbers chosen by all players . Find a mixed action that strictly dominates 100
Pareto
The Pareto Principle is a concept that specifies that 80% of consequences come from 20% of the causes, asserting an unequal relationship between inputs and outputs.
The Monty hall problem The Monty Hall problem is a famous, seemingly paradoxical problem in conditional probability and reasoning using Bayes' theorem. Information affects your decision that at first glance seems as though it shouldn't.
Hawk Dove
In this model, doves exemplify the cooperative behavior without intraspecies conflict, while hawks represent the aggressive behavior. In the absence of hawks, doves share the resource equally and avoid conflict, but having hawks around lead to doves escaping without fighting.