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What is a Game Theory?

Game theory is a concept in managerial economics used by business managers to make intelligent decisions regarding price and output. The model is used in economics, political science, psychology, and computer science field. The game theory model is used in computer science to launch new applications with new and modern concepts.  John Nash and John von Neumann as well as famous economist Oskar Morgenstern were the key pioneer of game theory.

Importance of Game Theory

The game theory is applicable in various fields and thus, students face game theory assignments. The logic of the game helps professionals to organize business easily in the economics field. Game theory is the base of the new and high-tech applications. Game theory coursework needs concentration and logic instead of research. So, students need game theory Assignment Help for higher credits.

Game Theory Explained:

Some of the Game Types are as follows:

  • Cooperative / non-cooperative– A cooperative game is when the players are able to form binding commitments externally enforced. e.g., contract law whereas a game is non-cooperative when the players need to be self-enforcing or cannot form alliances.
  • Symmetric/ asymmetric-  The game where the payoffs for playing a particular strategy depends not on who is playing them but on the other strategies employed. The player’s identities can be changed without changing the payoff to the strategies.
  • Zero-sum/non-zero-sum- Zero-sum games are special games in which choices by players can neither increase nor decrease the available resources. In zero-sum games, the total benefit to all players in the game, for every combination of strategies, always adds to zero. On the other hand,  in non-zero-sum games, again by one player does not necessarily correspond with a loss by another. In non-zero-sum games, the outcome has net results greater or less than zero.
  • Simultaneous/ Sequential- Simultaneous games are those games where both players move together or the later players are unaware of the earlier players’ actions making them effectively simultaneous. Sequential games are games where later players have some knowledge about earlier actions. The normal form is used to represent simultaneous games, while the extensive form is used to represent sequential ones.
  • Combinatorial- Combinatorial games are those in which finding an optimal strategy stems from the multiplicity of possible moves. Games that involve imperfect information may also have a strong combinatorial character, e.g. backgammon.

Apart from these; there are other game types like discrete and continuous games, differential games, infinitely long games, etc.

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