GameTheory.pptVIP

Lecture V: Game Theory In the last two lectures, we talked about Multi-Agent Systems Analysis Intervention In this lecture, we will talk about Game theory complex interactions between people Start With A Game Rock-paper-scissor From Games To Game Theory Some hints from the games Rules Results (payoff) Strategies Interactions between strategies and payoff Games are everywhere. Economic systems: oligarchy monopoly, market, trade … Political systems: voting, presidential election, international relations … Military systems: war, negotiation,… Game theory the study of the strategic interactions among rational agents. Rationality implies that each player tries to maximize his/her payoff History of Game Theory 1928, John von Neumann proved the minimax theorem 1944, John von Neumann Oskar Morgenstern, 《Theory of Games and Economic Behaviors》 1950s, John Nash, Nash Equilibrium 1970s, John Maynard Smith, Evolutionarily stable strategy Eight game theorists have won Nobel prizes in economics Elements of A Game Player: Who is interacting? N={1,2,…,n} Actions/ Moves: What the players can do? Action set : Payoff: What the players can get from the game Strategy Strategy: complete plan of actions Mixed strategy: probability distribution over the pure strategies Payoff: An Example: Rock-paper-scissor Players: A and B Actions/ Moves: {rock, scissor, paper} Payoff: u1(rock,scissor)=1 u2(scissor, paper)=-1 Mixed strategies s1=(1/3,1/3,1/3) s2=(0,1/2,1/2) u1(s1, s2) = 1/3(0·0+1/2·(-1)+1/2·1)+ 1/3(0·1+1/2·0+1/2·(-1))+1/3(0·(-1)+1/2·1+1/2·0) = 0 Classifications of Games Cooperative and non-cooperative games Cooperative game: players are able to form binding commitments. Non cooperative games: the players make decisions independently Zero sum and non-zero sum games Zero sum game: the total payoff to all players is zero. E.g., poker, go,… Non-zero sum game: