Game Theory

What is Game Theory?

Simple game

Given the simple game below:

Minimax

The game-matrix can be calculated as:

And the result of minimax for this game is 3, because of the Fundamental Result Theorem.

Fundamental Result Theorem

Non-deterministic Game

Von Neumann Theorem

The “Other Theorem” is the Fundamental Result Theorem.

Hidden information Game

Mixed Strategy

Mini poker result

Prisioner’s Dilemma (Non Zero Sum Game)

Nash Equilibrium

Nash Equilibrium Example

Nash Equilibrium Implications

Summary

Additional References:

• Andrew Moore’s slides on Zero-Sum Games
• Andrew Moore’s slides on Non-Zero-Sum Games