Game theory is a branch of applied mathematics used in economics and other social sciences to model strategic interactions between players. It was invented in 1944 by John von Neumann and Oskar Morgenstern. Some key methods in game theory include minimax-maxmin principle, mixed strategy/odds method, and graphical game theory. Game theory is used to understand competitor strategies in business and analyze two-person and multi-person games, including zero-sum games where one player's gain results in another's loss.

1. GAME THEORY
SUMMETED
TO
ABHINAV PANDAY SIR
PRESENTATION
BY
DINESH KUMAR
SWAMI PRASAD

2. What is game theory
• Game theory is a branch of applied
mathematics that is used in the social
sciences, most notably in economics, as well
as in biology (most notably evolutionary
biology and ecology), engineering, political
science, international relations, computer
science, and philosophy.

3. GAME THEORY
Game theory is a tool used by the players to
unerstand the stratagy Of a competitor player
Used by business Organisations to defeat their
competitors

4. HISTORY OF GAME THEORY
• The mathematical theory of games was
invented by John von Neumann and Oskar
Morgenstern (1944). For reasons to be
discussed later, limitations in their
mathematical framework initially made
the theory applicable only under special and
limited conditions.

5. METHODS
MINIMAX-MAXMIN PRINCIPAL
MIXED STRATEGY OR ODDS METHOD
DOMAINS METHOD
EQUAL GAME THEORY
GRAPHIC GAME THEORY

6. 1. MINIMAX-MAXMIN PRINCIPAL
 SOLVED THE FOLLOWING GAME(THEORY)PROBLEM USING
MINIMAX-MAXMIN PRINCIPAL PLAYER B=MAXMIN B= LOSS
PLAYER B MINIMAX A=PROFIT
VALU OF GAME=6
A=A2
B=B2
B1 B2 B3
A1 9 2 2 2
A2 8 6 6 6
A3 6 4 4 4
9 6 66
6

8. MIXED STRATEGY
• A mixed strategy game exists when
there is no saddle point. Each player will
then optimize their expected gain by
determining the percent of time to use
each strategy.

10. TYPES OF GAME
TWO PERSON GAME
AN PERSON GAME

11. TWO PERSON GAME
• TWO PLAYER IN A GAME AND EACH PLAYER
HAVE BOUGHT SET OF COURSE OF GAME
AND IT IS CALLED TWO PERSON GAME

12. AN PERSON GAME
• IN CASE AN PERSON GAME IN CASE MORE
TWO PERSON ARE INVOLED IN GAME EACH
HAVING A SET OF COURSE OF ACTION

13. ZERO SUM GAME
• ZERO SUM GAME ONE IN WHICH SOME OF
THE^PAYMENT TO ALL THE COPMITITER FOR
EVERY POSIBLE OUT COME OF THE GAME

15. TWO PERSON ZERO SUM GAME
• Zero-sum is a situation in game theory in which one person's gain is equivalent to
another's loss, so the net change in wealth or benefit is zero. A zero-sum game
may have as few as two players, or millions of participants. Zero-sum games are
found in game theory, but are less common than non-zero sum games.
• OPTION 1 OPTION 2
1 2
1 50 -50
2 -50 50