central university of south bihar

Presentation on :
GAME THEORY
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(UNMIXED
Under the guidance of Dr. Pradip ram sir
STRATEGY)
Presented By :

Name : Vishal kumar

Enrollment no. : CUSB2110112021
SEMESTER : 3RD
SESSION : 2021-2023
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Game theory :
HISTORY:
Game theory came into existence in 20th century .
In 1994 , JOHN VON NEUMANN and OSCAR MORGENSTERN published a book “ Theory
of game and economic behaviour ” .

Definition :
In business and economic literature , the term game refers to the situation of conflict and
competition in which two or more competitors (participant) are involved in the decision
making process in anticipation of the certain outcome over a period of time .
 Terminologies :
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1. Player .

2. Strategy .

3. Minimax principle .

4. Maximin principle .

5. Saddle point .

6. Value of the game .

 assumptions :
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1. The numbers of the players is finite .

2. One player attempts to maximizes the gain while other attempts to minimizes
the losses .

3. Each players has a definite course of actions .

4. The rules of play are known to all the players .

5. Players simultaneously selects their respective courses of action .

6. Players have to make their individual decisions without direct communication .

Game theory flow chart :
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 Pure strategy :
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If the maximin value is equal to minimax value then the game is said to have
saddle point and if the saddle point is there then it is known as pure strategy .

Example :
Pure strategy continued… :
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THANK
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YOU…