Game theory can be considered the study of strategic decision-making. It applies mathematical models to understand how people make choices when their ...

In game theory, a game is a scenario where players make decisions to achieve their goals, considering the possible choices of others. These games are ...

Players are individuals or groups who make decisions. These decisions impact not only their outcomes but also those of other players. For example, in a ...

Games can be classified as Zero-sum games and Non-zero-sum games. A Zero-sum game is one where the gain of one player is exactly equal to the loss of ...

A payoff is an outcome that a player receives from participating in a game based on the actions they and their opponents choose. It can vary depending on ...

A dominant strategy is one that results in the highest payoff for a player, no matter what the other players decide to do. Conversely, a dominated ...

Equilibrium in dominant strategies occurs when each player chooses their best strategy regardless of what others do. This simplifies analysis since the ...

A Nash Equilibrium occurs when all players in a game choose strategies that are best for them, given the strategies chosen by the others. No player can ...

The matrix provided represents the payoffs of a Prisoner's Dilemma. To find the Nash Equilibrium, first consider Suspect A's options. If B remains ...

Consider two rival mobile catering services, T-Truck and B-Van. They must independently choose to serve lunch either downtown or in the industrial area ...

Burger Queen (BQ) and King's Burger (KB) are deciding whether to launch a new spicy burger during the summer, fall, or not at all. Both chains benefit ...

Players typically select a pure strategy where they choose a specific action with certainty. However, not all games allow for pure strategies, leading ...

A maximin strategy is used by a player to minimize potential losses in the worst-case scenario. The strategy involves choosing the option that maximizes ...

Consider two companies in the electric vehicle charging market, both considering investing in ultra-fast charging technology. Here's their payoff ...

Repeated games involve playing the same game multiple times with the same players. These games are crucial in understanding how decisions evolve over ...

An infinitely repeated game is one in which players repeatedly engage in the same game without a predetermined end. Examples include firms repeatedly ...

Sequential games involve scenarios where one player moves first, and other players observe this action before making their own decisions. Decision trees ...

Backward induction can be used to solve sequential games and find the perfect Nash equilibrium. It works by reasoning backward from the end of the game to ...

Side payments are a strategy where one player offers something to the opponent to persuade them to act in a way that benefits the first player. Let's ...

In a sequential game, credible commitment means players make promises or threats they are likely to keep because they have no incentive to deviate from ...

In game theory, entry deterrence discourages competitors from entering a market by creating credible threats or signals that make entry risky. Consider ...

In game theory,'reputation to deter entry' explores how firms discourage competitors by building a reputation for aggressive responses. Consider ...