Flashcards in Game Theory and Auctions Deck (14):

1

## Game Theory

### Tool Kit - Strategic Decision Making

2

## Non-Cooperative Game Theory

### Studies adapted strategies of decision making in non-cooperative situations

3

## Non-Cooperative Game Scenarios

### Simultaneous or sequential decisions, Complete or Incomplete Information

4

## What is a "Game?"

### Mathematical representation of a strategic interaction with three parts: N- Agents, S-Strategies, P- Payoff to equal as Solutions

5

## Solution of the Game

### Equilibrium as a set of strategies predicts Players Behavior

6

## Strategy

### Given the actions players can take in the game (go left or right), a strategy is a full contingent plan that describes the player's action at any given point in the game.

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## Payoffs

### What people will obtain from the game

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## Strategic Form Games

###
Players move simultaneously or, if sequentially, players cannot observe the other players' moves.

Equilibrium concepts:

1. Equilibrium in dominant strategies

2. Nash Equilibrium

9

## Extensive Form Games

###
Players move sequentially

Equilibrium Concept:

Subgame-perfect Nash Equilibrium (look ahead and reason back)

10

## Analyze Strategic Form Games

### Use Payoff Matrices

11

## Dominant Strategy

### A strategy that a player would want to follow regardless of the other player's behavior

12

## Dominated Strategy

### A strategy that a player would not want ot follow regardless of the other player's behavior.

13

## Best Response

### A best response is one player's best answer to an anticipated move by the other player

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