文档介绍：Chapter Twenty-Eight Game Theory Game Theory u Game theory models strategic behavior by agents who understand that their actions affect the actions of other agents. Some Applications of Game Theory u The study of oligopolies (industries containing only a few firms) u The study of cartels; . OPEC u The study of externalities; . using mon resource such as a fishery. u The study of military strategies. What is a Game? u A game consists of – a set of players – a set of strategies for each player – the payoffs to each player for every possible list of strategy choices by the players. Two-Player Games u A game with just two players is a two-player game . u We will study only games in which there are two players, each of whom can choose between only two strategies. An Example of a Two-Player Game u The players are called A and B. u Player A has two strategies, called “ Up ” and “ Down ”. u Player B has two strategies, called “ Left ” and “ Right ”. u The table showing the payoffs to both players for each of the four possible binations is the game ’ s payoff matrix . An Example of a Two-Player Game This is the game ’s payoff matrix. Player B Player A Player A ’ s payoff is shown first. Player B ’ s payoff is shown second. LRUD (3,9) (0,0) (1,8) (2,1) An Example of a Two-Player Game . if A plays U p and B plays R ight then A’ s payoff is 1 and B ’ s payoff is 8. This is the game ’s payoff matrix. Player B Player A LRUD (3,9) (0,0) (1,8) (2,1) An Example of a Two-Player Game And if A plays D own and B plays R ight then A ’ s payoff is 2 and B ’ s payoff is 1. This is the game ’s payoff matrix. Player B Player A LRUD (3,9) (0,0) (1,8) (2,1) An Example of a Two-Player Game Player B Player A A play of the game is a pair such as (U,R) where the 1st element is the strategy chosen by Player A and the 2nd is the strategy chosen by Player B. LRUD (3,9) (0,0) (1,8) (2,1)