GAME THEORY

SUBMITTED BY:
• B.M.AHADUZZAMAN & SUJITH KUMAR
JITH
• ID:21904030 ID:21904010
• SESSION: 2018-2019 SESSION : 2018-
2019
• DEPARTMENT OF MATHEMATICS DEPARTMENT OF
MATHEMATICS

SUBMITTED TO:
• DR. MD. ANAWAR HOSSEN
• CHAIRMAN
 INTRODUCTION

 What is game theory?

 History of game theory.
 Where is game theory used?
 Types of game theory.
 Key elements of game theory.
 Conclusion.
 WHAT IS GAME
THEORY
 Game theory is the process of modeling the
strategic interaction between two or more
players in a situation containing set rules and
outcomes.
 In strategic games , agents choose strategies
that will maximize their return , given the
strategies the other agents choose.
 The mathematics of human interactions.
 History of game theory

 Von Neumann wrote a key paper in 1928.

 1944,”Theory of games and economic
behavior” by von Neumann and Morgenstern.
 1950,Nash invents concept Nash equilibrium.
 Game theory booms after that.
 1944,Harsanyi,Nash and Selten win Noble
prize in economics for theory.
 Where is game theory
used

1. Mathematics 6.Political Science

2. Computer Science 7.Law
3. Business 8.Sports
4. Biology 9.Psychology
5. Economics 10.Philosophy
**In business , game theory is beneficial for modeling competing behaviors between
economics agents.
Business often have several strategic choices that affect their ability to realize
economic gain. For example , business may face dilemmas such as weather to retire
existing products or develop new ones, lower prices relative to the competition, or
employ new marketing strategies.
 TYPES OF GAME
THEORY

 Two person or n-person games.

 Zero sum and non zero sum.
 Pure strategy game.
 Mixed strategy game.
 Finite and infinite strategy.
 Cooperative and non-cooperative.
 Simultaneous and sequential.
 KEY ELEMENTS OF GAME
THEORY
 Players: who is interacting?
 Strategies: what are their opinion?
 Payoff: what are their incentives?
 information: what do they think?
 Rationality: how do they think?
 CONCLUSION

Game theory is a classic theory which applicable

all most all the field . The main significant of
game theory is to formulate the alternative
strategy to compete with one another and in
same sense it is an essential tool for decision
making process according to fluctuations in
relevant contents.