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GameTheory in brief
Rationality:
A decision maker is said to be rational, if he consistently makes decisions in the persuit of his own objective.
It is assumed that each players objective is to get maximum payoff in some utility scale
Selfish and self-interest are the implications of rationality.
Intelligence:
A person has all information about the other players and can thus make all inferences that a game-theorist can make.
An Intelligent player makes strategic decisions. He is aware of the exceptions of other players and thus makes decision which is the best response for the other player.
Common knowledge is the implication of Intelligence.
Common knowledge: The fact that every player knows what a Game Theorist knows recursively, the whole model is known to every player and this is the common knowledge.
It is assumed that each players objective is to get maximum payoff in some utility scale
Selfish and self-interest are the implications of rationality.
Intelligence:
A person has all information about the other players and can thus make all inferences that a game-theorist can make.
An Intelligent player makes strategic decisions. He is aware of the exceptions of other players and thus makes decision which is the best response for the other player.
Common knowledge is the implication of Intelligence.
Common knowledge: The fact that every player knows what a Game Theorist knows recursively, the whole model is known to every player and this is the common knowledge.
A players private information is not common knowledge among all the players.
The nature is a default player in the game theory.
The nature is a default player in the game theory.
Ex :
1. Bike Free riding in India: The roads, traffic rules the difference in the players(peoples), way to think, together forms the “Nature”(default player) while the analysis of free-riding is considered.
2. Chess becomes a trivial game for rational players.
2. Chess becomes a trivial game for rational players.
--- By Zermelo.
A Game-Theoritic model of Chess reveals that it is not at all interesting for rational players. However the model does not capture about the assymetric abilities of the players which actually makes it interesting. Thus bounded rationality grapples with the asymmetric abilities of the players and non-availability of infinite computation power.
Commitments include promises, agreements, threats.
A game is co-operative if the commitments are enforceable.
Different Representational forms:
A Game-Theoritic model of Chess reveals that it is not at all interesting for rational players. However the model does not capture about the assymetric abilities of the players which actually makes it interesting. Thus bounded rationality grapples with the asymmetric abilities of the players and non-availability of infinite computation power.
Commitments include promises, agreements, threats.
A game is co-operative if the commitments are enforceable.
Different Representational forms:
1. Strategic Form Game/Normal Form Game:
--- Is one where the plan is made and is made once for all and each player execute their corresponding plan simultaneously.
Extensive Form Games:
--- This only defines a possible order, but the Action-Of-Plan is considered only when the decision is made accordingly. Here Action-Of-Plan may change depending on the other players Action-Of-Plan.
--- Is one where the plan is made and is made once for all and each player execute their corresponding plan simultaneously.
Extensive Form Games:
--- This only defines a possible order, but the Action-Of-Plan is considered only when the decision is made accordingly. Here Action-Of-Plan may change depending on the other players Action-Of-Plan.
--- A coalition form OR the characteristic form game is one which is played by associating a value to a subset of players. This is a form of Co-operative Game.
References -
John Nash's Biography
http://www.gametheory.net
The above link has many things related to Game Theory.
Nash's correlation of his life with Game Theory Concept
References -
John Nash's Biography
http://www.gametheory.net
The above link has many things related to Game Theory.
Above link is a complete technical lecture notes on Game Theory by Prof. Y. Narahari (IISc). When you click on the link, the link might have got modified, so, if then view the cached copy of the same.
The above link gives us access to a huge list of study-material in the P.D.F format.
The above link consists of audio, vedio and html resources of Game Theory.
Nash's correlation of his life with Game Theory Concept
