GAME THEORY

Dr. Ratri Parida

Introduction

Any competitive situation is

called a game.
The term game represents a
conflict between two or more
parties.
A situation is called as a game:
(i) Number of competitors are finite
(ii)There is a conflict of interest
between the participants
(iii)Each participant/player has a
number of actions

Strategy
Strategy: complete set of plan of actions
specifying precisely what the player will do
under every possible future contingency.
Pure Strategy: if one knows in advance of
the play that is certain to be adopted
irrespective of the strategy of the other player.
Mixed Strategy: probabilistic combination of
available choices.

 Payoff:
Outcome of the game

Types of Game:
Two-person game and n-person game
Zero sum game
Two person zero sum game

Maximin and Minimax Principle: