GAME THEORY

BASICS
Maximin y Minimax

6
Remember Nash Equilibrium?
Top Middle Bottom

Top (6,1) (2,8) (4,2)

Middle (7,1) (10,4) (9,7)

Bottom (5,1) (11,3) (5,5)

Remember Nash Equilibrium?
Top Middle Bottom

Top (6,1) (2,8) (4,2)

Middle (7,1) (10,4) (9,7)

Bottom (5,1) (11,3) (5,5)

Remember Nash Equilibrium?
Top Middle Bottom

Top (6,1) (2,8) (4,2)

Middle (7,1) (10,4) (9,7)

Bottom (5,1) (11,3) (5,5)

Remember Nash Equilibrium?
Top Middle Bottom 1. This is the situation
where each player
choose the best
Top (6,1) (2,8) (4,2)
response to other player
choices

2. Rational players are

considering the best
Middle (7,1) (10,4) (9,7) utility given other
players’ choices.

Bottom (5,1) (11,3) (5,5)

Do you think that everyone
is going to play like this?
What does “Maxmin” mean?
What if,
“Players choose the strategy that maximizes
their own minimum payoff” (Maxmin)
COLUMN
Top Middle Bottom
ROW Top (6,1) (2,8) (4,2)
He/she is
looking for the
best strategy of
the worst Middle (7,1) (10,4) (9,7)

Bottom (5,1) (11,3) (5,5)

What if,
“Players choose the strategy that maximizes
their own minimum payoff” (Maxmin)
COLUMN
Top Middle Bottom
ROW Top (6,1) (2,8) (4,2)
He/she is
looking for the
best strategy of
the worst Middle (7,1) (10,4) (9,7)

Bottom (5,1) (11,3) (5,5)

What if,
“Players choose the strategy that maximizes
their own minimum payoff” (Maxmin)
COLUMN
Top Middle Bottom He/she is
looking for the
best strategy of
Top (6,1) (2,8) (4,2) the worst

ROW Middle (7,1) (10,4) (9,7)

(5,1) (11,3) (5,5)

Bottom
What if,
“Players choose the strategy that maximizes
their own minimum payoff” (Maxmin)
COLUMN
Top Middle Bottom He/she is
looking for the
best strategy of
Top (6,1) (2,8) (4,2) the worst

ROW Middle (7,1) (10,4) (9,7)

(5,1) (11,3) (5,5)

Bottom
What if, both players play Maxmin, they
will end with… 1. This is the
COLUMN situation where
both players play
the strategy
Top Middle Bottom where they
maximize the

Top (6,1) (2,8) (4,2)

best of the worst
payoff.
2. This is a situation
where players are
acting like
ROW Middle (7,1) (10,4) (9,7) “chicken” and
they guarantee
the best of the
minimum
(5,1) (11,3) (5,5)
Bottom
What if, both players play Maxmin, they
will end with… 1. This is the
COLUMN situation where
both players play
the strategy
Top Middle Bottom where they
maximize the

Top (6,1) (2,8) (4,2)

best of the worst
payoff .
2. This is a situation
where players are
acting like
ROW Middle (4,1) (10,4) (9,7) “chicken” and
they guarantee
the best of the
minimum
(5,2) (11,3) (5,5)
Bottom
Nash Equilibrium Maxmin
Maximisation -Rational choice Best choice of worse situations

COLUMN
Do you think that everyone
is going to play like this?
What does “Minmax” mean?
What if,
“players choose the strategy that minimizes
the maximum payoff of their opponents”
(Minimax) COLUMN
Top Middle Bottom
Top (6,1) (2,8) (4,2)
ROW
He/she is
Middle (7,1) (10,4) (9,7)
looking for the
worst of the best The worst payoff
payoff of the is “5”, then Row
other player player is going to
Bottom (5,1) (11,3) (5,5) choose Bottom
strategy
What if,
“players choose the strategy that minimizes
the maximum payoff of their opponents
(Minimax) COLUMN
The worst payoff Top Middle Bottom
is “7”, then
Column player is
going to choose Top (6,1) (2,8) (4,2) He/she is
Top strategy looking for the
worst of the best
payoff of the
ROW Middle (7,1) (10,4) (9,7) other player

(5,1) (11,3) (5,5)

Bottom
What if,
“players choose the strategy that minimizes
the maximum payoff of their opponents
(Minimax) COLUMN
Top Middle Bottom
If both players
play Minimax
Top (6,1) (2,8) (4,2)
ROW
Middle (7,1) (10,4) (9,7)

(5,1) (11,3) (5,5)

Bottom
Nash Equilibrium Minmax
Best choice regardless of other Searching for the worst of the best
player choices situation of the other player
What if,
“players choose the strategy that minimizes
the maximum payoff of their opponents
(Minimax) COLUMN
Top Middle Bottom
Top (6,1) (2,6) (3,7)
ROW
He/she is
Middle (8,2) (9,4) (9,6)
looking for the
worst of the best
payoff of the
other player
Bottom (5,3) (11,3) (5,5)
Could you imagine another
way of making decisions?
What does “MaxMax” mean?
Maxmax: players choose the strategy that
provides the highest payoff for themselves
COLUMN
Top Middle Bottom
Top (6,1) (2,8) (4,2)
ROW
He/she is
looking for the
Middle (7,1) (10,4) (9,7)
best payoff

Bottom (5,1) (11,3) (5,5)

Maxmax: players choose the strategy that
provides the highest payoff for themselves
COLUMN
Top Middle Bottom He/she is
looking for the
Top (6,1) (2,8) (4,2)
best payoff

ROW
Middle (7,1) (10,4) (9,7)

Bottom (5,1) (11,3) (5,5)

Maxmax: players choose the strategy that
provides the highest payoff for themselves
COLUMN
He/she is
Top Middle Bottom looking for the
best payoff

Top (6,1) (2,8) (4,2)

ROW
He/she is
looking for the Middle (7,1) (10,4) (9,7)
best payoff

Bottom (5,1) (11,3) (5,5)

Nash Equilibrium Maxmax
Best choice regardless of other Searching for the best payoff
player choices for themselves
Case Example. Bismarck Sea War (1943)
What is the Japanese Convoy going to choose? Is it going to be: Maxmin, minimax or maxmax?

Japanese Convoy
North Route South Route
North Route
North America.
Kenney
(2,-2) (2,-2)
Commander
Strategy
South Route (1,-1) (3,-3)
Exercise or group dynamic
■ Bismarck Sea War (1943)
Maxmin: Japanese Convoy choose the strategy that maximizes their own minimum payoff.

Japanese Convoy
North Route South Route

North America. North Route (2,-2) (2,-2)

Kenney
Commander
Strategy
South Route (1,-1) (3,-3)
Exercise or group dynamic
■ Bismarck Sea War (1943)
Minmax: Japanese Convoy choose the strategy that minimize the payoff of North America.

Japanese Convoy
North Route South Route

North America. North Route (2,-2) (2,-2)

Kenney
Commander
Strategy
South Route (1,-1) (3,-3)
To sum up

■ Nash Equilibrium: players choose the strategy where they are best regardless
of other player choices

■ Maxmin: players choose the strategy that maximizes their own minimum payoff
■ Minmax: players choose the strategy that minimizes the maximum payoff of their
opponents

■ Maxmax: players choose the strategy that provides the highest payoff for
themselves
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 How am I going to get 100 POINTS?
100
pts

6 lectures - basics 6 lectures – advanced and presentations

Outdoor
On-site Activities
Activities
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20 Kahoot! (20 points)
(20 points)

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