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• W653058984 abstract "Last updated: June 15, 2015 Abstract — In this paper, a gentle introduction to Game Theory is presented in the form of basic concepts and examples. Minimax and Nash's theorem are introduced as the formal definitions for optimal strategies and equilibria in zero-sum and nonzero-sum games. Several elements of cooperative gaming, coalitions, voting ensembles, voting power and collective e ciency are described in brief. Analytical (matrix) and extended (tree-graph) forms of game representation is illustrated as the basic tools for identifying optimal strategies and solutions in games of any kind. Next, a typology of four standard nonzero-sum games is investigated, analyzing the Nash equilibria and the optimal strategies in each case. Signaling, stance and third-party intermediates are described as very important properties when analyzing strategic moves, while credibility and reputation is described as crucial factors when signaling promises or threats. Utility is introduced as a generalization of typical cost/gain functions and it is used to explain the incentives of irrational players under the scope of irrationality. Finally, a brief reference is presented for several other more advanced concepts of gaming, including emergence of cooperation, evolutionary stable strategies, two-level games, metagames, hypergames and the Harsanyi transformation. Index Terms — Game Theory, Minimax theorem, Nash equilibrium, coalitional gaming, indices of power, voting ensembles, analytical form, extended form, Leader, Battle of the Sexes, Chicken, Prisoner's Dilemma, Hostage Situation, Kamikaze, signaling, blu , credibility, promises, threats, utility, rational irrationality, two-level games, hypergames, evolutionary stable strategies, Harsanyi transformation, metagames. GAME THEORY is a vast scientific and research area, based almost entirely on Mathematics and some experimen- tal methods, with applications that vary from simple board games to Evolutionary Psychology and Sociology-Biology in group behavior of humans and animals. Conflict situa- tions are presented everywhere in the real world, every day, for thousands of years - not only in human societies but also in animals. The seller and the buyer have to come up with a mutually acceptable price for the grocery. The employer and the employee have to bargain in order to reach a mutu- ally satisfying value for the salary. A buyer in an auction has to continuously estimate the cost/gain value of making (or not) the next higher bid for some object. The primary adversaries in a wolf pack have to when it is bene- ficial to fight over the leadership and when to stop before they are severely wounded. A swarm of fish has to collec- tively decide what is the optimal number and distance of the piket members or scouts that serve as the early warning" @default.
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• W653058984 date "2015-06-01" @default.
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• W653058984 title "Games people play: An overview of strategic decision-making theory in conflict situations" @default.
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