Game Theory

These flashcards cover key terms and concepts relevant to the study of Game Theory.

Game Theory

A mathematical framework for analyzing situations in which multiple decision-makers (players) interact, where the outcome for each player depends on the strategies chosen by all.

Players

Decision-makers (individuals, companies, countries, AI systems) who make choices in the game.

Strategies

Complete plans of action that players will follow throughout the game.

Pure Strategy

A strategy in which a player always chooses the same option.

Mixed Strategy

A strategy that involves randomizing between different options.

Payoffs

The outcomes or rewards a player receives based on the combination of strategies chosen by all players.

Rules of the Game

The framework specifying how the game is played, including timing, actions available, and information structure.

Strategic Interdependence

The idea that a player's success depends on the actions of others.

Rationality

The assumption that players aim to maximize gains or minimize losses through logical decision-making.

Conflict and Cooperation

Players may operate in a competitive manner or cooperate for mutual benefit.

Information Structure

Refers to what players know about others' actions and preferences during the game.

Simultaneous Moves

Players make decisions at the same time without knowledge of others' choices.

Sequential Moves

Players take turns, allowing later players to observe previous actions.

Nash Equilibrium

A state in which no player can benefit from changing their strategy while others keep theirs unchanged.

Mathematical Modeling

The use of mathematical frameworks like models, matrices, and decision trees to represent complex interactions.

Zero-Sum Game

A situation in which one player's gain is exactly balanced by another player's loss.

Cooperative Games

Games where players can form binding agreements or coalitions.

Non-Cooperative Games

Games where players act independently and competitively, with no binding agreements.

Static Games

Games where players make decisions once and simultaneously.

Dynamic Games

Games where players make decisions over multiple stages, with earlier moves influencing later ones.

Symmetric Games

Games where players have identical strategies and payoffs that depend only on actions, not identities.

Asymmetric Games

Games where different players have different strategies or payoffs.