introduction to game theory

Christian Julmi
Introduction to Game Theory
Download free books at
Download free eBooks at bookboon.com
2

Christian Julmi
Introduction to Game Theory
Download free eBooks at bookboon.com
3

Introduction to Game Theory
© 2012 Christian Julmi &
bookboon.com
ISBN 978-87-403-0280-6
Download free eBooks at bookboon.com
Click on the ad to read more
Introduction to Game Theory
4
Contents
Contents
1 Foreword 7
2 Introduction 8
2.1 Aim and task of game theory 8
2.2 Applications of game theory 8
2.3 An example: the prisoner’s dilemma 9
2.4 Game theory terms 11
3 Simultaneous games 14
3.1 Foundations 14
3.2 Strategies 14
3.3 Equilibriums in pure strategies 20

3.4 Equilibriums in mixed strategies 26
3.5 Special forms of games 34
3.6 Simultaneous games in economics 35
3.7 3-person games 38
www.sylvania.com
We do not reinvent
the wheel we reinvent
light.
Fascinating lighting offers an infinite spectrum of
possibilities: Innovative technologies and new
markets provide both opportunities and challenges.
An environment in which your expertise is in high
demand. Enjoy the supportive working atmosphere
within our global group and benefit from international
career paths. Implement sustainable ideas in close
cooperation with other specialists and contribute to
influencing our future. Come and join us in reinventing
light every day.
Light is OSRAM
Download free eBooks at bookboon.com
Click on the ad to read more
Introduction to Game Theory
5
Contents
4 Sequential games 41
4.1 Foundations 41
4.2 Terms 42
4.3 Subgames and subgame perfect equilibriums 43
4.4 Sequential games played simultaneously and Nash equilibriums 45
4.5 e First Mover’s Advantage (FMA) 47

4.6 An example: the Cuba crisis 48
5 Negotiations (cooperative games) 52
5.1 Foundations 52
5.2 Coalitions 53
5.3 e characteristic function 53
5.4 e cake game 54
5.5 Negotiations between two players 56
5.6 Distinguishing cooperative and non-cooperative games 57
360°
thinking
.
© Deloitte & Touche LLP and affiliated entities.
Discover the truth at www.deloitte.ca/careers