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    Game Theory QT

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    ruchi sharma
    Game theory is a body of knowledge that deals with making decisions in competitive situations. It seeks to determine a rival's most profitable counter-strategy to one's own best moves. Game theory classifies games as two-person or multi-person, zero-sum or non-zero-sum, pure-strategy or mixed-strategy. Methods like the saddle point method, dominance method, and graphical method can be used to analyze games and determine optimal strategies. While useful, game theory has limitations and may not always accurately model real-world competitive situations.

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    Game Theory QT

    Uploaded by

    ruchi sharma
    15 views12 pages
    Game theory is a body of knowledge that deals with making decisions in competitive situations. It seeks to determine a rival's most profitable counter-strategy to one's own best moves. Game theory classifies games as two-person or multi-person, zero-sum or non-zero-sum, pure-strategy or mixed-strategy. Methods like the saddle point method, dominance method, and graphical method can be used to analyze games and determine optimal strategies. While useful, game theory has limitations and may not always accurately model real-world competitive situations.

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    Game Theory Qt

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    Game theory is a body of knowledge that deals with making decisions in competitive situations. It seeks to determine a rival's most profitable counter-strategy to one's own best moves. Game theory classifies games as two-person or multi-person, zero-sum or non-zero-sum, pure-strategy or mixed-strategy. Methods like the saddle point method, dominance method, and graphical method can be used to analyze games and determine optimal strategies. While useful, game theory has limitations and may not always accurately model real-world competitive situations.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    15 views12 pages

    Game Theory QT

    Uploaded by

    ruchi sharma
    Game theory is a body of knowledge that deals with making decisions in competitive situations. It seeks to determine a rival's most profitable counter-strategy to one's own best moves. Game theory classifies games as two-person or multi-person, zero-sum or non-zero-sum, pure-strategy or mixed-strategy. Methods like the saddle point method, dominance method, and graphical method can be used to analyze games and determine optimal strategies. While useful, game theory has limitations and may not always accurately model real-world competitive situations.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 12

    GAME THEORY

    Presented by :-
    REENA SOREN - 210409120086
    RUCHI SHARMA - 210409120094
    Game Theory

     Developed by Prof. John Von Neumann and Oscar


    Morgenstern in 1928 game theory is a body of
    knowledge that deals with making decisions .

     The approach of game theory is to seek , to


    determine a rival’s most profitable counter-strategy
    to one’s own best moves .
    Competitive situations
    (Games Theory)

    Pure strategy
    Mixed strategy
    (saddle point exist)

    Strategies Game Strategies (linear


    Strategies Game
    ( Arithmetic programming
    (Graphical method)
    method) method )
    CLASSIFICATION
     Two –Person Game – A game with 2 number of
    players.
     Zero Sum Game – A game in which sum of amounts
    won by all winners is equal to sum of amounts lost by
    all loser.
     Non –Zero Sum Game – A game in which the sum of
    gains and losses are not equal .
     Pure – Strategy Game – A game in which the best
    strategy for each players is to play one strategy
    throughout the game .
     Mixed – Strategy Game – A game in which each player
    employs different times in the game
    Saddle point method
     At the right of each row , write the row
    minimum and underline the largest of them .
     At the bottom of each column , write the
    column maximum and underline the smallest
    of them.
     If these two elements are equal , the
    corresponding cell is the saddle point and the
    value of the game.
    The pay off matrix of a two person zero sum game is:

    Player B
    B1 B2 B3
    15 2 3
    Player A
    16 5 7
    -7 4 0

    Player B
    B1 B2 B3 R
    A1
    15 2 3 2
    Player A A2
    16 5 7 5
    A3
    -7 4 0 7
    C
    15 5 7
    Dominance method
    It states that if the strategy of a player dominates
    over the other strategy in all conditions, the later
    strategy can be ignored.
    Rule 1 : If all the elements in a row of pay off matrix
    are “<”or“=” to the corresponding elements of other
    row then comparative row will deleted.
    Rule 2 : If all the elements in a row of pay off matrix
    are “>”or“=” to the corresponding elements of other
    column then comparative row will deleted.
    Considered a game with a pay off matrix.

    A1 42 72 32 12
    A2 43 30 25 10
    A3 44 8 -10 0
    A4 45 10 0 1532 *15  0 * 20
     96 / 7
    35

    B1 B2 B3 B4
    A1 42 72 32 12
    A2 40 30 25 10
    A3 30 8 -10 0
    A4 45 10 0 15
    GRAPHICAL METHOD
    It is helpful in finding out which of the two
    strategies can be used.
     Considered a game with a pay –off matrix
    B1 B2 B3 B4 B5
    A1 2 -4 6 -3 5
    A2 -3 4 -4 1 0

    Solution : By applying dominance rule we can cut of the


    following column .
    B1 B2 B3 B4 B5
    A1 2 -4 6 -3 5
    A2 -3 4 -4 1 0
    B1 B3

    So, we have : A1 2 -3
    A2 -3 1

    7 7
    6
    5 Value of game =
    4 2*(4/9)-3*(5/9)
    3 = 7/9
    2
    1
    0
    -1
    -2
    6 -3
    5 -4
    -5
    4 -6
    3 -7
    2
    1
    0
    LIMITATIONS OF GAME THEORY
    Game theory cannot account for the fact that
    in some situations we may fall into a Nash
    equilibrium, and other times not, depending
    on the social context and who the players are.
    THANK YOU

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