Game Theory

Game theorists use the word ‘game’ to refer to any complete model made up of a list of individuals (players), a sequence of strategies and payoffs. The term ‘game’ does not refer to a symbolic activity done for fun, but a series of assorted constraints relating to an issue

player 2 chooses strategy V with a probability of ½ (0.5). The expected payoffs for the two players are 6 for player 1 and 2.5 for player 2. The Nash theorem can be seen here, since any strategic form game has Nash equilibrium in mixed strategies

Nash equilibrium in mixed strategies: Each player chooses the strategy that allows them to maximize their payoffs. In the Nash equilibrium from our example, player 1 chooses Y with a probability of ½ (0.5) and

To illustrate this, let’s look at the game in the previous example and assume that this time, player 1 randomly plays X and Y with a probability of ½ (0.5) and assume that player 2 does the same

a mixed strategy is the probability distribution based on a set of pure strategies. Players randomly choose to play their strategies with a certain probability

The strategies defined and used up to now are pure strategies (with options available to the players

iterative elimination of weakly dominated strategies.
In some cases, the game cannot be solved

Nash equilibrium obtained by the successive elimination of strictly dominated strategies is more trustworthy than equilibrium obtained by the

elimination of dominated strategies, there is only one strategy left (unique profile) for each player. Nash equilibrium consists of strategies obtained this way

A game can be solved by iterative elimination of the dominated strategies where, at the end of the process of