MATHEMATICS

IN GAMES
Chiu, Heart Valerie and
Rasuman, Snaira Hannah
THE GAME THEORY
WHAT IS GAME

THEORY?
A study of strategic decision-making where situations
are called games and the participants are called
players.

An alternative term suggested is interactive decision

theory.

Based on the idea that many interactions not usuallu

associated with games such as elections, business
competition, and war can be treated and analyzed like
games.
WHAT IS GAME
THEORY?
A study of how people, companies, or even nations
determine strategies under different situations in the
face of competing moves or strategies acted out by
other players.

Pioneered by mathematician John von Neumann,

initialy emphasizes on games of pure conflict.
 SOME

APPLICATIONS OF

GAME THEORY
 L. Yang. Y. Shi. S. Hao. L. Wu:
Route Choice Model Based on Game Theory for Commuters
LICAI YANG, Ph.D.1
(Corresponding author)
E-mail: yanglc@sdu.edu.cn
YUNFENG SHI, Ph. Student 1
E-mail: yantaiyunfeng@hotmail.com
SHENXUE HAO, Ph. Student 1
E-mail: haoz2000@163.com
LEI WU, Ph.D.1
E-mail: wulei@telchina.com
1 School of Control Science and Engineering
Shandong University
250061, Jinan, China
Artur

Tomaszewski

Poznań

University of

Economics and

Business, Poland

Game Theory

Applications in

Business

Simulation

Games
Business
Game Theory as

an Instrument for

the Analysis of
International

Relations Hector

Correa
Diplomats
Modeling Poker

Challenges by

Evolutionary

Game Theory

Marco Alberto

Javarone
Gamblers
Auction Theory

Jonathan Levin

October 2003
Auctions
An Optimal
Single-Winner
Preferential
Voting System
Based on Game
Theory Ronald L.
Rivest and Emily
Shen
Voting
 GAME

THEORETICAL

MODELS IN

BIOLOGY
Mark BroomJanRychtar
WHAT IS A

GAME?
(In dictionary) a form of competitive activity played

according to rules.

(In Math) consists of a set of players, a set of actions

(called moves) for each of them, and a payoff

function for each player that depends on the choices

of all the players involved.

GAME FORMS
Extensive Form - a tree diagram in which each
strategic decision is shown as a branch point.

Normal Form - a table of numbers with the strategies

fisted along the margins of the table of the payoffs
for the participants in the cells of the table.

Note: These forms are just alternative ways of

looking at games, and each can be applied to any
game, so the representation that works best in a
particular case is used.
GAME THEORY
An Extensive Form
GAME THEORY
A Normal Form
CLASSIFICATIONS

OF GAMES
 CLASSIFICATION OF GAMES
Number of Players Perfect Information
Simultaneous and
Complete Information
Sequential Games
Randomness Zero-sum Games

Cooperative and Non-cooperative Games

CLASSIFICATIONS

OF GAMES
Number of Players - usually, there should be more

than one player.

Randomness - games may contain some random

events which can influence the outcome of the

game.
Zero - Sum Games - every possible outcome of

this type of games, the sum of the payoffs of all

the player equals zero.

Simultaneous and Sequential Games:
Simultaneous - each player has only one move.
Sequential - no two players move at the same

time, players may have to move several times.

Perfect Information - every player, at the time

when he/she is about to make a move, knows all

moves done by the other players.

Complete Information - all players knows the

structure of the game, the order in which the

different players move, all possible moves in

each situations, and the payoffs for the different

players for all the possible outcomes.

Cooperative and Non - Cooperative Games -

results of negotiations are binding and can be

enforced.
Thank you for
listening!