Game Theory Picture if you will a group of people making decisions. The decisions that are made do not have to be significant at all. They have to be just significant to the situation at hand. This concept is considered to mathematicians as Game Theory. Game Theory is broken down into tree different types of games. As stated by Thomas S. Ferguson of UCLA “There are three main mathematical models or forms used in the study of games, the extensive form, the strategic form and the coalitional form”. Some games that are the most popular to being discussed in Game Theory are chess, checkers, and tic-tac-toe (Ferguson). There are also different terms that are used in this theory as well. Some of the major terms are The Nash Equilibrium, Utility Theory, perfect information, imperfect information, and no chance moves. Game theory is broken down by the timeline of game theory, the terms, and why it is studied. Timeline of Game Theory Game theory something that has been studied for a long time in history. In early history several people tried to get a grips on what was happening to society and used something similar to Game Theory to do it. At that time what Game Theory was mostly involved talking about economics. The first known written information about the theory in a mathematical context was from mathematician named James Waldegrave in 1713, he was writing a letter that described minimax system that was about how winning a card game (Open Options Corporation, 2007). The card game he was writing about is called le Her. The game is not the complicated and the minimax system he wrote about was to figure out all the different possibilities of winning this game if you are either player one or player two (Ethier, 2009). There are s... ... middle of paper ... ...athematician. Retrieved April 17, 2011, from New York Times.com: http://www.nytimes.com/1995/01/27/obituaries/albert-w-tucker-89-pioneering-mathematician.html Nash, J. (1994). John Nash Autobiography. Retrieved April 17, 2011, from nobelprize.org: http://nobelprize.org/nobel_prizes/economics/laureates/1994/nash-autobio.html Norstad, J. (2010, January 19). An Introduction to Utility Theory. Retrieved April 17, 2011, from http://homepage.mac.com: http://homepage.mac.com/j.norstad/finance/util.pdf Open Options Corporation. (2007, May 4). Introduction to Game Theory. Retrieved April 17, 2011, from http://www.rotman.utoronto.ca/icpm/Open%20Options_Introduction_To_Game_Theory.pdf Shor, M. (2005, August 15). Perfect Information. Retrieved April 17, 2011, from Dictionary of Game Theory Terms, Game Theory .net: http://www.gametheory.net/dictionary/PerfectInformation.html
The game of poker is a card based game, which has developed into many various kinds, in terms of the number of cards dealt, how many cards are on the deck visible for all players, and what remains hidden, over the past few decades. Despite its differences, poker of any kind shares one major significance; the factor, that either sets one winning or losing, is based upon decisions made in the long run. The utmost degree of such decisions resemble economic components, since the most elementary acts, such as raising the bets and folding one’s cards, may be regarded as a case of supply and demand. And one of them, which is the topic of this essay, is Nash Equilibrium, commonly used in games with no more than two players involved which is also known as „Heads Up“. Nash Equilibrium sets two players, with the very same count of chips, against one another in a situation where each player can either bet, all of his or her stack only, or fold. After this particular match is finished, the players‘ stacks are equilibrated again and this whole process is being repeated for sake of the long run. This algorithm is also known as „Fictitious Play“ (Dudziak, 2006). Most importantly each of the players ought to take in consideration the opponent’s decision, based on which they reach a convenient consensus, meaning, in order to maintain Nash Equilibrium, they both must correctly presume the upcoming action (Osborne & Rubinstein, 1994). Thus it is foreseeable that one or the other side, oftenly, faces a difficulty while striving for an equilibrium.
Epstein, Richard A. The Theory of Gambling and Statistical Logic. New York: Academic, 1977. Print.
Coevolutionary gaming is a scenario-based activity that allows a group to explore all possibilities and the effects of each decision made. The term co-evolution is not a new idea. It stems from the ideology of evolutionary biology, which focuses on how species (defined as the predator and the prey) interact, adapt,
There are many definitions to theory. According to Akers (2009) “theories are tentative answers to the commonly asked questions about events and behavior” (Akers, (2009, p. 1). Theory is a set of interconnect statements that explain how two or more things are related in two casual fashions, based upon a confirmed hypotheses and established multiple times by disconnected groups of researchers.
In other words our perception of things is our reality and reality is subjective. This theory also states that with what one individual would call a rational strategy there may be a negative or unwanted outcome. Not all people reach the same goals by the same methods or processes. When coming up with a plan we consider our upcoming actions with decreased knowledge, different mindsets, and reasoning abilities that are not the same as others.
The Hitchhiking Game describes an internal combat that focuses on internal character and the discovery of new selves within. Kundera presents to the audience a story about a young man and a girl who lose themselves while trying to portray someone they customarily are not. Throughout their portrayal of “happy-go-lucky” and “irresponsible” strangers, the young man loses trust in the girl and is never able to view her the same way again. Although the girl did not want to advance the game once she recognized his aversion towards her actions, he was too invested in the role he was portraying to turn back. He became disgusted with the “alien whore” she had become and at once stopped treating her with the respect and love he had before, and began treating her as an object of desire. It is apparent that Kundera believes we are very complex creatures that do not have a static and stable character. Kundera wrote, “perhaps it was a part of her being which had formerly been locked up and which the pretext of the game had let out of its cage.”(pg.123) I think this quote successfully encapsulates the way Kundera perceives our character and how divergent it can be.
Gershenfeld, Alan. “Mind Games.” Scientific American 310.2 (2014): 54-59. Academic Search Complete. Web. 9 Apr. 2014.
The holocaust is known for the great number of deaths; including the six million Jews. Ida fink is a writer that captures this time period in her works. In “The Key Game” she appeals to pathos because of imagery used, connections to your own family, and dialog used by both the father and mother. Through her fiction stories, she tells tales that relate to what could have been and probably what was. Ida Fink is known for telling her stories in a journalist like tone with very little color. In her stories, she does not like to tell you how to feel she instead leaves that up to the reader. Fink does place some hints of emotion just by writing the story alone. The interpretation of her works is left up to the reader. As you read through her stories some will find more emotion, some will find more logic, and some may see more ethics. At the moment, we will be looking more on the side of emotions within this story.
Thompson, Arthur, John Gamble, John Gamble, A. III, and Alonzo Strickland. Strategy. McGraw-Hill/Irwin, 2005. 299. Print.
“The value of the next best alternative foregone as the result of making a decision”(Brue, 2005)
“Marginal analysis involves changing the value(s) of the choice variable(s) by a small amount to see if the objective function can be further increased (in the case of maximization problems) or further decreased (in the case of minimization problems)” (Thomas & Maurice, 2012, pp. 91). Marginal analysis is known as “the central organizing principle of economic theory” for its importance and applicability to many aspects of our daily lives as well as our careers (Thomas & Maurice, 2012, pp. 94). The key concepts of marginal analysis include total benefit, total cost, marginal benefit, marginal cost and net benefit. These concepts all come together to play a significant role in the use of marginal analysis to reach the optimal desired outcome.
Psychologists, Daniel Kahneman and Amos Tversky, created what is considered the most famous element of behavioral economics; prospect theory. Prospect theory is a theory of how people form decisions about prospects. A prospect is a gamble or a decision made about uncertainty. Within prospect theory, the value function represents how people value things. The weighting function infers how people deal with probabilities. People don’t weigh gains and losses the same. What they found is that people’s value or utility diminishes as they gain more. But for losses, it’s the
Paciotti, Brian . "Classical Theory." Lecture 8: Classical Theory, Deterrence Theory, Rational Choice Theory, Routine Activities Theory. http://www.brianpaciotti.com/lecture%208%20FALL%2005.pdf (accessed February 12, 2014).
theory which can be used as a lens to look at a set of facts. (E.g., journalist
Social Choice Theory is the study of collective decision making processes, most commonly used to analyze voting systems. It has its roots in the 18th century with the mathematical contributions to social sciences of Nicolas de Condorcet and Jean-Charles de Borda. Through the work of a few notable scholars (Sen, 1984; Arrow, 1951; Rawls, 1999), the theory became known as a tool to understand individual utility and one’s ability to function within the same capability set as any other member of society.