Game-Theory

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  • Battle of the sexes
    Last edited: 2024-04-07

    Battle of the sexes

    Suppose two friends $A$ and $B$ are going to a town to see a concert. There is two concerts on $x$ and $y$ but unfortunately they forgot to agree which one to go to and can’t communicate. They will both be unhappy if they go to a different concert and both get a score $0$. $A$ slightly prefers concert $x$ and if they go there together will get a score of $2$ whereas $B$ gets a score $1$ - whereas it is vice versa for concert $B$. In summary this can be represented in a payoff table as follows.

  • Elimination and Nash Equilibrium
    Last edited: 2026-01-28

    # Statement

    Lemma

    In an $n$-player pure strategy game, if elimination of Strictly dominated strategy eliminates all but one combination of strategies, that combination is the unique Nash equilibrium . Similarly a Nash equilibrium can never be strictly dominated .

  • Existence of Nash equilibrium
    Last edited: 2026-02-05

    # Statement

    Lemma

    In an $n$-player game where $n$ is finite and each player has a finite choice of pure strategies $\vert S_i \vert < \infty$, then there exists a (possibly mixed) Nash equilibrium .

  • Folk Theorem
    Last edited: 2026-01-28

    # Statement

    Lemma

    Any feasible payoff that is in the Security region can be realised as a Nash equilibrium with a sufficiently large discount factor.

  • Game theory
    Last edited: 2026-02-05

    Game theory

    Game theory is the study of systems where there are more than one rational players.

  • Grim trigger strategy
    Last edited: 2026-02-05

    Grim trigger strategy

    Given we have some agreed cooperation strategy $C$ and a strategy that guarantees the minmax profile for the other player $P$, the grim trigger strategy is as follows: as long as the other player is following strategy $C$, we follow strategy $C$ too—if they ever do not follow strategy $C$, we switch to strategy $P$ for the rest of time.

  • Minimax-Q
    Last edited: 2026-02-05

    Minimax-Q

    This is a generalisation of Q-learning to Stochastic games and is defined for each player.

  • Minmax decision
    Last edited: 2026-02-05

    Minmax decision

    If you choose to minmax, you want to minimise the maximum loss. In terms of gain you want to maximise the minimum gains, which is why it is sometimes referred to as maximin.

  • Minmax profile
    Last edited: 2026-02-05

    Minmax profile

    For a game, the minmax profile is the expected score a player can achieve assuming your opponents only want to harm you. They are allowed to take any strategy, this can be a Pure strategy or Mixed strategy .

  • Mixed strategy
    Last edited: 2026-02-05

    Mixed strategy

    In Game theory a pure strategy is non-deterministic i.e. you have access to a random variable $X$ that can be used to make your strategy $s: S \times [0,1] \rightarrow A$ from states of the game and the result of the random variable to actions.

  • Nash equilibrium
    Last edited: 2026-02-05

    Nash equilibrium

    In a game with $n$ players where player $i$ has choice of strategies in $S_i$. The state $(s^{\ast}_1, s^{\ast}_2, \ldots, s^{\ast}_n) \in S_1 \times S_2 \times \ldots \times S_n$ is in Nash equilibrium if for all $i$ we have

  • Optimum play exists for 2-player zero-sum games with perfect information
    Last edited: 2025-12-05

    # Statement

    Lemma

    In a 2-player zero-sum game with perfect information there exists an optimal pure strategy for each player.

  • Pavlov strategy
    Last edited: 2026-02-05

    Pavlov strategy

    The Pavlov strategy for Prisoner’s dilemma is given by the following rules:

  • Plausible threat
    Last edited: 2026-02-05

    Plausible threat

    A threat is plausible if it is Subgame perfect .

  • Prisoner's dilemma
    Last edited: 2024-04-06

    Prisoner’s dilemma

    Two people are caught mid crime and put in separate cells where they can’t talk to each other. They are both offered a plea deal if they testify against their companion, where:

  • Pure strategy
    Last edited: 2026-02-05

    Pure strategy

    In Game theory a pure strategy is deterministic i.e. it is a map $s: S \rightarrow A$ from states of the game to actions.

  • Security region
    Last edited: 2026-02-05

    Security region

    For a game, the security region is any outcome where both players get more than or equal to the Minmax profile .

  • Semi-wall stochastic game
    Last edited: 2024-04-07

    Semi-wall stochastic game

    The semi-wall game is a Gridworld game played on a 3x3 grid. With player $A$ starting in the bottom left corner and player $B$ starting in the bottom right. The goal of the game is to arrive at the money in the centre top - whoever does that first gets a point. If two players try to enter the same spot with even odds one player moves in and the other stays where they are. There is a semi-wall above each player to start with which has a 50% chance of letting them through, otherwise they stay where they are. The game looks as follows: semi-wall-game

  • Stochastic games
    Last edited: 2026-02-05

    Stochastic games

    A stochastic game is defined by the following data:

  • Strictly dominated strategy
    Last edited: 2026-02-05

    Strictly dominated strategy

    In a game with $n$ players where player $i$ has choice of strategies in $S_i$ and has utility function $U_i$. For a player $i$ strategy $s^{+} \in S_i$ strictly dominates $s^- \in S_i$ if and only if for all $(s_1, \ldots, s_{i-1}, s_{i+1}, \ldots, s_n) \in S_1 \times \ldots \times S_{i-1} \times S_{i+1} \times \ldots \times S_n$ we have

  • Subgame perfect
    Last edited: 2026-02-05

    Subgame perfect

    A strategy is subgame perfect if it is always the best strategy to follow independent of the history of the game.

  • Tit for Tat
    Last edited: 2026-02-05

    Tit for Tat

    In a symmetric two player game, the tit for tat strategy just copies the opponents move. In the first round it will do something random.

  • Zero-sum game
    Last edited: 2026-02-05

    Zero-sum game

    A game is zero-sum if the sum of all players’ gains and losses equals zero.