Ultimatum Game Theory

Ultimatum Game Theory
In this paper, the efficiency of the ultimatum game theory was assessed to resolve water conflicts between agricultural and environmental water needs
in Zarrinehroud River Basin, northwest of Iran. Irrigated agriculture and its water needs were to be adjusted in order to mitigate the downstream Lake
Urmia drying condition. The great need of food production in the region and in the whole country in one hand, and the worsening environmental
impacts due to the drying lake, on the other hand, are clearly conflicting issues.
Extensive ultimatum game theory with two financial strategies consisting of the purchase of irrigation water vs. cutting off water allocation to irrigated
agriculture without any payment (dictatorship strategy) was evaluated.
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Game Theory Reflection
My independent study on Game Theory this past semester has been an extremely rewarding experience. It has pushed me to learn more about myself,
to approach the world with new perspectives, to see similarities across discipline, and to cross–apply knowledge to improve my models. I was drawn
into Game Theory because of its wide range of applications across academic disciplines like economics, biology, and history as well as in real life
situations like bargaining and getting loans. In my independent proposal and my first blog post, I have established exploring the real world
applications of Game Theory as one of my major goals this semester. Since the start of September, I've been watching Game Theory courses on Yale
Open Courseware and doing weekly problem sets accompanying the lectures. The diverse examples Professor Polak used to illustrate complex
concepts confirmed my previous beliefs that Game Theory is not an isolated and purely theoretical subject, but is developed to answer human
curiosities and our needs. These lectures not only taught me to draw payoff matrices and decision tree to figure out best responses to hypothetical
situation but also to see the similarities in life situations through the perspectives of simplistic mathematic models. For example, the generalized
"prisoner's dilemma" model that involves two players and two strategies can be used to explain the necessity of roommate contract, procrastination in
group projects, or grades inflation in the

Entry Deterrence in Game Theory
Introduction
Game theory, in this essay, means the study of strategies adopted by rational decision–makers of economic agents in specific situations, analyzing
outcomes of mathematical models of conflict and cooperation (Myerson, 1991). Its basic elements include players, actions, information, strategies,
payoffs, outcome and equilibrium, among which, players, strategies and payoffs are the most essential; actions and outcome are called as rules of the
game (Rasmusen, 2000). The objective of the model is to establish equilibrium with the use of rules of the games.
Nash equilibrium, an important terminology in Game theory, is the situation when two or more players are involved in the game, and each player is
supposed to know other players'...show more content...
If such threat works, B will be able to remain the monopoly profit without paying the 100 wager; otherwise, B will face the competition from A.
Generally, the higher the wager is, the more credible the threat becomes.
In the above two situations, the hypothesis is all the structures, rule of the game and payoffs are disclosed to all the players. In the following section,
entry deterrence in static games of incomplete information will be analyzed. Suppose incumbent has two types: high costs and low costs. Incumbent
owns complete information, knowing its type selected; while entrant only has incomplete information, knowing that incumbent has two costs types but
is unclear about what type has incumbent chosen. Table 2 shows the different strategies in different types for A and B.
Table 2
Payoffs to: (A–––entrant, B–––incumbent)
Suppose the probability of A knows B as a high costs competitor is x; the probability of low costs will be (1–x), xв€€(0,1). When A chooses to enter,
its expected benefit will be u1= 40x+ (1–x) (–10) =50x–10; when A decides not to enter, its expected benefit u2=0x+ 0 (1–x) =0. Therefore, for A, only
when u1в‰Ґ u2 or 50x–10в‰Ґ0, that is when the probability of high costs is larger than 20%, A will choose to enter. Postulate that xв‰Ґ 20%, the
Bayesian Nash equilibrium is: (enter, collude) in high cost or (enter, fight) in low cost. If x<20%, then the Bayesian Nash

Game Theory Essay example
Assignment 2: Planning and Playing a Game
Objectives:
Learn how individuals contribute to teamwork
Experience some of the features of group work and teamwork
Understand what managers and organizational developers do to transform
groups into teams
Articulate the tangible benefits (both quantitative and qualitative) of
high–performing teams
Finish with an interest in learning more about these concepts and
techniques to apply what you learn
Background: For this assignment, you will plan and play a game with your family or friends, or at work based on the idea of the classic prisoner's
dilemma. If you have had a class on game theory, you will be well aware of this...show more content...
Instructions
Review in your textbook, the Big Five personality dimensions, pp. 74–76, and then consider the 3.1 Personality Insights inventory Select four or five
friends, coworkers, or family members and have them take the personality inventory Plan and play a game with the participants Write a 5–10 page

paper that addresses the assignment questions below
As you plan and play your game, you will negotiate the type of game you want to play and your role in it. Strive to determine some personal
characteristics of the game participants a head of time, or by observing them. Consider how the personal characteristics of the individuals in the game
manifest themselves in the informal roles they assume during the planning and execution of the game.
For the purpose of this assignment, you will want both a cooperative and a competitive element. To do that, you can form several groups to compete
and cooperate with each other, or you can have individuals in one group compete and cooperate. You can use rewards and/or punishments to create the
competitive/cooperative motivations.
Evaluation: When groups are formed, we want to consider how organizational structures, processes, and situations impact on group motivation, politics,
and goals achievement. Alignment of all of these structural, personal, and interpersonal components will help to ensure that the group will meld into a

Game Theory
Game theory – descriptive, normative or prescriptive?
Going through life we often are surprised by the different ways how people think, make decisions and interact. We believe that most of us are rational
human beans (to some extent) and, therefore, our decisions should be grounded in analysis of the situation, our experience and intuition. Therefore, the
human mind can be seen as an incredibly complicated machine that runs series of theoretical simulations of possible situations (often subconsciously)
to find the most optimal course of action, taking into consideration the possible strategies of others. When the decisions are important to us and the
reasoning process is conscious, we engage in strategic thinking. It has always been...show more content...
In the Oxford English dictionary the definition of game theory is as follows the branch of mathematics concerned with the analysis of strategies for
dealing with competitive situations where the outcome of a participant's choice of action depends critically on the actions of other participants. Game
theory has been applied to contexts in war, business, and biology. From the definition we see the important factors are the mathematical analysis,
different strategic options with different outcomes (pay–offs) and the interdependence of the players. Therefore it indeed looks like the so desired
theory described in the introduction of the essay, however, what does it actually deliver, that is the main focus of this essay. Modern game theory has
been developing now for more than 50 years since the book Theory of Games and Economic Behavior by John von Neumann and Oskar Morgenstern
was published in 1944. However, it must be noted that some important efforts in explaining the strategic choices – strategic decision making has been
done also before, for example by Zermelo. Konong, Kalmar and Borel. Game theory has evolved considerably since the publication of von Neuman
and Morgenstern's book and what is interesting the theory has developed far beyond its initial mathematical boundaries. This is due in a large part to
contributions in the 1950s from John Nash (1950, 1951). However, it was in the 1970s

The Theory Of Game Theory
Game theory is one to more complexed topics but reveals a clear understanding from different scholars. Don Ross explained that game theory is the
study that interacts with the different choices of economics agents which bring forth many different outcomes with the point to the preferences of those
agents, where the outcomes in question might have been intended by none of the agents (Ross, 2016). The properties that game theory considers in
economic situations include two or more 'economic actors ' – that is, two or more firms, individuals, political parties, etc. Each individual economic
actor has a set of decisions they can make – what price to charge, how much to save, whether to move right or left, etc. Each individual economic actor
has a 'goal ' or payoff, such as profit maximization, maximize happiness, minimize loss, etc.
The decisions made by one economic actor not only affects her payoff, but the payoff of one or more other economic actors. Schmidt (2003) states that
Game theory was invented in order to satisfy a mathematical curiosity. The difficulty at the outset was to find a theoretical solution to the problem
posed by uncertainty in games of chance (Schmidt, 2003). He further stated that the first completed formula of mathematical strategies was sketched by
Boral. The application of game theory to economics posed a more fundamental problem due to the distance of separating several major concepts
articulated in Theory of Games and Economic Behavior. Economics

Game theory is essential in strategic decision making. It is a necessary tool or guideline needed for decision making in situations involving
interdependence (Thomas & Maurice, 2010). A time in which it was necessary and vital to make some strategic decisions was with the planning and
coordinating of my wedding. Likewise, when my husband and I decided to get married, we both had different visions about how the planning process
should take place in addition to the size of the budget. Unbeknownst to us, we never envisioned that we would encounter as many challenges in
making as many vital decisions as we did.
First and foremost, our first decision came with should we take it upon ourselves and plan our wedding without the assistance of a wedding planner
and just take to the stage and plan it ourselves from beginning to end. Knowing that both my husband and I worked very demanding hours and
schedules, we wondered how we would get it all done. On my end, I was all for paying someone else to facilitate and coordinate our wedding and
take our thoughts and dreams and turn them into reality. However, my husband was looking at not hiring a wedding planner more so from the
perspective in sparing our budget and saving more money and he thoroughly believed the money spent on the wedding planner could 've been spent
elsewhere as he thought my work in event planning would prove sufficient enough. Despite, the fact that I worked just as many hours as he did, I did
not think

The Theory Of Game Theory
Brief introduction
In this mathematical investigation, game theory is discussed. Game theory is the area of mathematics that considers methods of selecting best
strategies in situations of conflict of interest. It is applicable to psychology, economics, politics, warfare. It is the practical nature of this subject that
makes it truly interdisciplinary. It is the practical nature that makes it, in my opinion, worthwhile studying. Game theory is closely linked to probability
and statistics, in fact these two subjects are used as tools by game theorists to develop their models. A study that began with John Von Neumann in
1928 and that keeps on progressing. There are plenty of famous game theory problems but for this investigation I refrained from using them. The
purpose of this work is not to deliver the very essence of the subject in a dozen pages and by the end make an enlightened Strategist out of the
reader; it is to show how this subject is useful and to present it as simple and as approachable as possible. All problems this work contains are
original. What is a game, strategy, player?
To better understand game theory, one should first get a clear idea of what kind of situation this subject is applicable to. For a problem to be tackled
using the many principles of the theory, starting from very basic arithmetic to complex mathematics, it first needs to have distinct persons or players. A
player, unlike in the everyday world, is an individual or group engaging in the

A Study On Game Theory
In economics, there are many subfields of study and one that has the most difficulty and importance is the study of game theory. From the beginning of
economics, mathematical concepts and analyzing people's behavior have been tools to determine the choices people will make in a buyer and seller
market. The most influential person in game theory is without a doubt John Nash. John Nash came up with the Nash equilibrium, which is used in
everyday Intro to Game Theory courses across the United States. However, Nash's idea for non–cooperative games came about in the mid–20th
century, so before then there were many other game theorist who provided their outlook on how to solve complex games. Furthermore, there are many
economist that are...show more content...
Hence, Nash's creation of non–cooperative game theory should be looked upon as game theory's most brilliant idea ever thought of in economics. On
the contrary, the father of economics, Adam Smith, introduction to economic theory by using "linear algebra on prices and quantities in a vector space
of commodity and allocations", which made him very popular during his time (Myerson). Also, Adam Smith influenced other economist to apply
mathematics to their own theories. The Nash equilibrium can be a useful tool to conduct an analysis on incentives in social institutions and also how
simplistic the Nash equilibrium can be, and it is obvious to say how astonishing that this concept was not thought of before John Nash. Moreover, the
first application of Nash equilibrium in a mathematical model comes from Augustin Cournot. In 1838, Cournot published a book on economics that
produced the theory of oligopolistic firms that includes monopolists and perfect competitors. On a side note, Cournot is known for being the founder
of oligopoly theory, "but to give him credit for non–cooperative games would be to confuse its methodology with its general formulation" (Morrison).
He came up with the oligopoly equilibrium by conducting an analysis on firms operating in a

Game Theory Applications in Business
Game Theory
Orton K.C. Tsun
April 1, 2012
Introduction As individuals, we make decisions throughout the day weighing the cause and effect, cost and benefit, risk and impact of our actions on
ourselves and upon others. When taken to a larger scale, as the manager of a team, the CEO of a corporation, or the leader of a nation, the decisions
exponentially increase in impact and importance.
Game Theory, the analysis of the concepts used in social reasoning when dealing with situations of conflict (Rubinstein, 1991), is one of many methods
used to provide rational strategies towards the making of decisions. Game theory provides logical and mathematical models towards decision–making
which are applied to real–life situations such as...show more content...
The objective is to determine the most profitable (revenue minus cost) product based on its attributes relative to the market but also accounting for
what the competition is selling comparably. Because of the complexity there are a great deal of parameters to take into consideration as part of the
"game form" including the number of manufacturers in the market, number of products offered by the manufacturer, number of products on the
market, number of segments in the market, engineering costs of a given product by a manufacturer, market demand for a given product, market share
of the manufacturer (brand influence), and the probability of another manufacturer producing a similar product. One assumption factored into the game
is that strategically a competitor would consider not entering a market (production of a given product) saturated with similar products. From the above
mentioned examples, we can validate that Game–Theoretic modeling plays an invaluable role as a metaphorical approach to strategic management
(Saloner, 1991). Game Theory provides measurable simulations of what could happen to enable rationalization of the best course of action without
incurring the heavy costs of a true trial and error method. With that said, as noted in our introduction, while game theory

Game Theory Essay
Game Theory was said to have been introduced by Emile Borel in 1921. Borel was a French mathematician who published papers on the theory of
games. From this standpoint and according to the article "Game Theory", Borel could have been named the "first mathematician to envision an
organized system for playing games" however; evidence has shown that Borel did not develop his ideas any further. This is the reason why most
historians have given credit to John Von Neumann.
Von Neumann was born in 1903 in Budapest, Hungary. His first mathematical paper was published, along with the help of his tutor, when he was 18.
Von Neumann went on to study mathematics in college and eventually earned his PhD in mathematics with a minor in both physics and...show more
content...
In "Game Theory Models and Methods", the prisoner's dilemma is said to be the most widely known example of game theory. This dilemma was
invented by Albert Tucker of Princeton University in 1950. In this dilemma, one is to imagine two people arrested under suspicion of having
committed a crime together. The police do not have sufficient evidence to convict the criminals. They are placed in two separate rooms and the
police visit each suspect, offering a deal. The deal is basically, whoever gives up evidence on the other person will go free. If neither suspect takes
the offer, they are working against the police and both will receive a small punishment because of lack of evidence. Both suspects appeared to have
won because neither took the offer, but were given a small punishment. However, if one suspect takes the offer and betrays the other, the one who
gave up the evidence will gain more because he will be set free and the one who remained quiet will get the full punishment. However, if both
suspects betray each other, they will both receive punishment. From this example, we learn that each suspect was given "a choice between only two
options, but cannot make a good decision without knowing what the other one will do" (Game Theory Models and Methods). This strategy is still
used today not only be police officers and detectives, but it is also used in some of the criminal television shows,

Game Theory : Basic Concepts, History And Models
Shuwen Shen Mr. Li ITS 102 April, 23, 2016 Game Theory: Basic Concepts, history and Models In ancient China, during an era known as
"Warring States Period", China was divided and conquered by independent seven warring states. King Wei of Qi, who was the emperor of Qi
State, and the general Tian Ji, were both horse racing fans. They always bet heavily on winning and losing. This is just the background of Tian Ji's
horse racing strategy. Now here comes the dilemma. The horses can be divided into three different speed classes: fast, medium and slow. Since the
king's horses are always better than Tian Ji's, Tian Ji always lose the game. However, Tian Ji can choose the order of the horses to compete. There
are three rounds of a race and anyone who wins two rounds can be the final winner. This is one of the most well–known and popular stories in China
today, which was originally recorded in the Records of History, biography of Sun Bin (Si–Ma 65). Many people may have heard this story when they
were still in elementary school. In order to get rid of this dilemma, Sun Bin, who is Tian Ji's friend, came up with a clever and perfect method, that is,
pitting the slow horse against the king's fast horse, fast horse against the king's medium horse, and medium horse against the king's slow house. After
finishing all three rounds, although Tian Ji lost the first race, he would win the following two rounds so that he would be the winner of the whole
race. Fig. 1. Tian Ji's horse racing

Theory Of Games And Economic Behavior Essay
Introduction I first was interested in game theory after having learned about the topic in economics during my junior year. I fell in love with
economics and game theory was a major aspect of microeconomics. Furthermore, the notion that a company could decide what course of action to take
based simply off of a chart astounded me. It caused me to truly wonder how such actions could occur and how game theory truly worked. It simply
begged the question, what was the underlying basis of game theory and how did a company choose the most probable option that would increase their
profits.
Game theory, by definition, is the branch of mathematics concerned with the analysis of strategies for dealing with competitive situations where the
outcome of a participant 's choice of action depends critically on the actions of other participants. The theory was first presented via a proof by John von
Neumann. This was followed by the book Theory of Games and Economic Behavior, co–written with Oskar Morgenstern and published in 1944,
establishing the field of game theory.
The theory holds a prominent place when having been applied in the field of economics and has produced various methods for advancement and
analysis. Most notably, to me, the theory provides an ability to look into how businesses will act, especially those that act as that of a duopoly. Such a
market structure allows an in–depth view that would allow a business to make a decision based on analyzed data. Being that I am

Game Theory and Economic Analyst
Game Theory and Economic
Analysis
Game Theory and Economic Analysis presents the wide range of current contributions of game theory to economics. The chapters fall broadly into two
categories. Some lay out in a jargon–free manner a particular branch of the theory, the evolution of one of its concepts, or a problem that runs through
its development. Others are original pieces of work that are signiп¬Ѓcant to game theory as a whole.
After taking the reader through a concise history of game theory, the contributors discuss such topics as:
the connections between Von Neumann's mathematical game theory and the domain assigned to it today since Nash the strategic use of information
by game players the problem of...show more content...
DIMAND AND MARY ANN DIMAND
2 Rupture versus continuity in game theory: Nash versus Von
Neumann and Morgenstern
CHRISTIAN SCHMIDT
PART II
Theoretical content
3 Bluп¬Ђ and reputation

SYLVAIN SORIN
4 An appraisal of cooperative game theory
HERVГ‰ MOULIN
5 The coalition concept in game theory
SГ‰BASTIEN COCHINARD
6 Do Von Neumann and Morgenstern have heterodox followers?
CHRISTIAN SCHMIDT
© 1995 Г‰ditions Dalloz
English edition: editorial matter and selection © 2002 Christian
Schmidt; individual chapters © the contributors
7 From specularity to temporality in game theory
JEAN–LOUIS RULLIГ€RE AND BERNARD WALLISER
PART III
Applications
8 Collective choice mechanisms and individual incentives
CLAUDE D'ASPREMONT AND LOUIS–ANDRГ‰ GГ‰RARD–VARET
9 Team models as a framework to analyze coordination problems within the п¬Ѓrm
JEAN–PIERRE PONSSARD, SГ‰BASTIEN STEINMETZ, AND
HERVГ‰ TANGUY
© 1995 Г‰ditions Dalloz
English edition: editorial matter and selection © 2002 Christian
Schmidt; individual chapters © the contributors
Contributors
SГ©bastien Cochinard. LESOD, University of Laon, France.

Claude d'Aspremont. CORE, Catholic University of Louvain, France.
Mary Ann Dimand. Albion College, Michigan, USA.
Robert W. Dimand. Brock University, Canada.
The late Louis–AndrГ© GГ©rard–Varet. Universities of Aix–Marseilles II and III,
France.
HervГ© Moulin. Rice

Essay On Game Theory
Game Theory was devised in the 1950's and slowly grew into the field of biology and today it is even used in computers and is one of the most
important tool in every field. Game Theory is a psychological theory which usually applies to social conditions, which affect the behavioral and
decision making of an individual. This theory is vast and deals with how a group reacts and interact. This theory is used in mostly all major fields such
as business, biology, science, logic, computer etc.
A number of laws and theories are used to support the game theory such as zero sum games where one individual gains exactly equal gains exactly
equal net losses of other individuals. Probability is one of the major theory which heavily supports the game theory,...show more content...
They can study their strategies and decisions they make to buy and sell products , how they engage during transactions and what outcomes that result
in the end.
Game theory has three main branches: The mechanism design theory, the general equilibrium theory and the decision theory.
The Mechanism design theory gives analysts flexibility, as it lowers the restrictions on variables. This theory shows the consequences of different
regulations and guidelines and how groups of people can take advantages when using certain strategy in different situations. We can look at the
examples on auctions where sellers can identify the risks and avoid them completely.
The General equilibrium theory lays down general guidelines to set up rules and restrictions looking at the behavior of people. It is broadly used in
economics such as in making tax policies, voting, which intensives to apply and to interpret stock exchanges.
The Decision theory is a game generally used for a single person. It brings the possible outcomes of the choices of a person where high risks equals
maximum profits and low risk equals low profits. Probability and bayer laws are generally used for the decision

Game Theory: An Introduction To The Game Theory
Game Theory
''Game theory'' is a study of conflict and cooperation between rational and intelligent decision–makers. It is mainly used in economics, but recently has
been used in political science and psychology, and computer science and biology. Game theory seeks to say that any social problem can be formulated
into a game, and then played out to find the best possible solution to the problem. I recently took a Coursera class entitled ''Welcome toGame Theory''
by Michihiro Kandori from the University of Tokyo. The course was an early look into game theory, going over the history and basic principles of
it, offering some simple situations game theory might help to solve, such as a traffic jam, or an actual game like poker. Moden game theory was
developed by Jogn von Neumann, via a paper he published in 1928, utilizing a fixed–point theorem on continuos mappings into...show more content...
It was split up into four weeks, with the first week discussing the history of game theory, as well as laying out problems that you can use game theory
to solve. Week one also introduced a simple card game, which is played by two players and is meant to demenstrate the concept of ''nash equlibrium'',
named after the famous mathematician John Nash Jr. Nash equlibrium is a concept of a non–cooperative game involving two or more players, in
which each player is assumed to know the equilibrium strategies of the other players, and no player has anything to gain by changing only his own
strategy. If each player has chosen a strategy and no player can benefit by changing strategies while the other players keep theirs unchanged, then the
current set of strategy choices and the corresponding payoffs constitutes a Nash equilibrium. This is one of the founding principles of game theory, and
is ulitilized in finding the best possible solution to social problems you may

Games Theory in International Relations
GAMES THEORY IN INTERNATIONAL RELATIONS
1.0 INTRODUCTION
The field of game theory came into being with Г‰mile Borel 's researches in his 1938 book 'Applications aux Jeux des Hazard', and was followed by
the 1944 book 'Theory of Games and Economic Behaviour' by John von Neumann and Oskar Morgenstern. This theory was developed extensively in
the 1950s by many scholars. Game theory was later explicitly applied to biology in the 1970s, although similar developments go back at least as far as
the 1930s.
Game theory is a branch of applied mathematics that is used in the social sciences, most notably in economics, as well as in biology. It is also used in
engineering, political science, international relations, computer science, and...show more content...
They include the player/decision maker, strategies, rules and pay off.
3.1Player/Decision Makers.These are parties involved in competitive or cooperative situation. These parties could be nations, multinational corporations
or even regional blocs.
3.2Strategies.These are the plan(s) by state actors designed to achieve a particular long term aim. It could be aimed at pursuing their own interests at
the expense of others leading to conflict or competition.
3.3Rules.These are the regulations or principles governing conduct or procedure within a particular area of activity amongst players. It is expected that
players must coordinate their potential strategies within the rules when pursuing their potential payoffs.
3.4Pay off/Outcomes.These are result(s) of particular choices made by players at a given point in the game/situation.
4.0 TYPES OF GAMES

There are various types of games based on their classification. They are the cooperative or non–cooperative, symmetric, zero sum, one player, many
player and sequential games.
4.1Cooperative or non–cooperative.A game is cooperative if the players are able to form binding commitments. For instance the legal system requires
them to adhere to their promises. In non–cooperative games this is not possible. Often it is assumed that communication among players is allowed in
cooperative games, but not in non–cooperative ones. This classification on two

Theory Of Games And Economic Behavior
Abstract
In the year 1944, with John Von Neumann and Oskar Morgenstern publishing their paper on Theory of Games and Economic Behavior, foundations of
Game Theory was laid. This paper is an attempt at condensing the fundamentals required to help decision–making at early stages of Project
Procurement. With the advent in implementation of Game Theory in real world, new theories have emerged with Game Theory as their stepping stone.
Simple yet important concept such as Nash Equilibrium, Payoffs will be discussed to give the reader and idea they can improve and customize upon
according to their scenario. One strong recommended reading is a great introductory book on the topic, Game Theory: A...show more content...
It is important that we understand why its creator felt this way, according to them the reason for this is simply that economics is far too difficult a
science to permit its construction rapidly, especially in view of the very limited knowledge and imperfect description of the facts with which
economists are dealing. Only those who fail to appreciate this condition are likely to attempt the construction of universal systems.
The "Game" doesn't always equate to the procedure that results in winning or loosing (which can be the case many a times). Here the connotation is
merely utilized to provide a sense of structure involving strategies and plans to the whole process. As seen in a general Game, there are players and
payoffs. Players have their strategies for particular situations, which may or may not depend on the other players' moves. One interesting nature of
game theory is seen when deciding moves using predefined strategies; our moves can be independent of those of the opponent's, however, results
occurring due to the combination moves are totally interdependent. This can be confusing but with understanding this underlining concept of game
theory comes into light easily. This phenomenon is known as Strategic Interdependency. Simply described as: What I do affect your outcome, what you
do affects my outcome.
To understand such subtle complexities, one must be familiar with the knowledge required about

Game Theory On Non Cooperative Games
Haejung Yoon
Mr. Cetron pd.8
Game Theory
Game theory states that the actions of one participant depend critically on the actions of other participants. Game theory includes different types of
games, such as, cooperative/non–cooperative, symmetric/asymmetric, zero–sum/ non–zero–sum, simultaneous/ sequential, and more. However, this
paper will focus mainly on non–cooperative games, zero–sum games, puzzles, and paradoxes. In zero–sum games, a player will only benefit at the
equal expense of others. Non–cooperative games are games in which players make decisions independently; they make decisions without any
discussions with other players. These ideas are seen in the Nash equilibrium the Prisoner's dilemma, games and puzzles (tic–tac–toes, the blue–eyed
suicides), and paradoxes (Parrondo's Paradox, Unexpected Hanging Paradox). John Nash's works in game theory have provided a greater understanding
to the factors that control chance in daily life. He considered non–cooperative games in his doctoral thesis, and in 1950 proved his acclaimed theorem
that equilibria always exists in any such game (p.396, Elwes). This is known as the Nash equilibrium. The Nash Equilibrium is the solution concept of
non–cooperative games, where each player knows the equilibrium strategies of the other players, and players have nothing to gain by changing only
their own strategy. This helps to formally predict how a game will be played. For example, consider the Prisoner's Dilemma. There are two

Ultimatum Game Theory

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