What is game theory Slideshare?
Game theory is the study of how optimal strategies are formulated in conflict. It is concerned with the requirement of decision making in situations where two or more rational opponents are involved under conditions of competition and conflicting interests in anticipation of certain outcomes over a period of time.
What is game theory explain in detail?
Game theory is a theoretical framework to conceive social situations among competing players and produce optimal decision-making of independent and competing actors in a strategic setting.
What is game theory and its types?
Game Theory is primarily a mathematical framework but has found applications in many fields ranging from social sciences to the biological sciences. This theory analyzes the decision-making of a player based on how they expect other players to make a decision.
What is the application of game theory?
Economists use ‘Game Theory’ as a tool to analyze economic competition, economic phenomena such as bargaining, mechanism design, auctions, voting theory; experimental economics, political economy, behavioral economics etc. Game theory is applied for determining different strategies in the business world.
What are the main characteristics of game theory?
Characteristics Of Games, Analysis Of Zero-sum, Two-player Games, Nonzero-sum Games. Game theory is a branch of mathematics concerned with the analysis of conflict situations. It involves determining a strategy for a given situation and the costs or benefits realized by using the strategy.
What are the properties of game theory?
Who founded game theory?
1. Philosophical and Historical Motivation. Game theory in the form known to economists, social scientists, and biologists, was given its first general mathematical formulation by John von Neuman and Oskar Morgenstern (1944).
What are the advantages of game theory?
If forecasts are accurate, game theory provides a mathematical framework to analyze the course of action most likely to yield the desired outcomes. Such preparation helps leaders make informed choices regarding everything from pricing and product launches to target market selection and marketing campaigns.
Who invented game theory?
What is the game theory?
Game theory • Developed by Prof. John Von Neumann and Oscar Morgenstern in 1928 game theory is a body of knowledge that deals with making decisions. • The approach of game theory is to seek, to determine a rival’s most profitable counter-strategy to one’s own best moves. 3.
Why is the graphic method useful in game analysis?
It is also useful if the nature of the game is of the form 2*n and m*2. The graphic method consists of two graphs: 1. The pay-off available to player A versus his strategies options, and 2. The payoff (losses) faced by player B versus his strategies options.
What is Nash equilibrium game theory?
Nash equilibrium GAME THEORY Developed by Prof. John Von Neumann and Oscar Morgenstern in 1928 game theory is a body of knowledge that deals with making decisions when two or more rational and intelligent opponents are involved under situations of conflict and competition.
What are the different types of strategy games?
• Pure-Strategy Game – A game in which the best strategy for each player is to play one strategy throughout the game. • Mixed-Strategy Game – A game in which each player employs different strategies at different times in the game. 5. (1) Saddle point method: • At the right of each row, write the row minimum and underline the largest of them.