Skip to main content

Game Theory

In Game Theory this is any interaction between two or more players in which each player's payout is influenced by their own and others' decisions.

Theories​

Nash equilibrium is a solution concept of a non-cooperative game involving two or more players in which each player is assumed to know the equilibrium strategies of the other players, and no player has anything to gain by changing only their own strategy.

  • Strategy
  • Quantifiable
  • Emotional

Strategy​

A strategy is a description of how a person decides what to choose.

Information​

Types of games

  • Complete Information: A game in which all players have access to information about other players; the reward functions, strategies, and "types" of players are all well-known.
  • Imperfect Information: A game in which players are uninformed of other players' activities; nonetheless, everything else, such as player types, strategies, and payoffs, is common knowledge.
  • Incomplete Information: A game in which players may or may not be aware of the game's type, player actions, strategies, or payoffs.

Cooperative​

A game in which players form alliances and work together to respond to credible external threats.

Dominant​

A strategy that is the most favorable approach among all alternatives, regardless of what other players perform.

Non Cooperative​

This is the most prevalent sort of game, and it is a strictly competitive game between individuals.

Outcomes​

Payoff​

The precise, accurate changes in value inside a value system that correspond to a player's action.

Nash Equilibrium​

The best outcome of a game in which no player has an incentive to depart from a predetermined strategy; no incremental advantage from altering actions, providing other players' plans remain constant.

Shapely Value​

The average marginal contribution of a player's worth over all potential coalitions; it's the average predicted marginal contribution on a per-player basis in cooperative/coalition games.

Zero Sum​

A situation in which one player's gain is the same as another's loss; the game's net change in wealth or benefit is zero.

Non Zero Sum​

A circumstance in which the system gains or loses money as a result of the game's outcome; all players' earnings and losses do not equal zero.

In game theory, a Bayesian game is a game in which players have incomplete information about the other players.

Nature randomly chooses a type for each player according to a probability distribution across the players' type spaces.

This probability distribution is known by all players (the "common prior assumption")

The idea being these could be stacked and evaluated against ledger for forecast value when making strategic project decisions on six weekly cycle.