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Details Title: Game Theory Description: Question about Game Theory course at Univeristy of tilburg Total Flash Cards: 14 Created: 09/16/2007 12:44:11	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term What is game theory? Definition Mathematical framework for modeling and analyzing conflict situations that involve economic agents with possibly diverging interests. Term What is the focus of non-cooperative game theory? Definition Individual strategic and competitive utility maximizing behavior of economic agents (players). Term What is strategic analysis? Definition Considering situations from the viewpoint of other players to reach on adequate private choice of action. Term Why is strategic analysis needed in game theory? Definition Because the utility of a certain agent in interactive situations will also be dependent on actions of other players. Term What is the main focus of cooperative game theory? Definition Analysing the negoation process within a group of players in establishing a contract on a joint plan of activities, including an allocation of the correspondingly generated revenues. Term What is a transferable utility game? Definition A game where players can transfer utility (cash) between each other without any costs. The units if this utility are valued equally by all others. Term What is N? Definition It is a finite set of players. A set of 3 players is written as: N = {1, 2 ,3} Term What does 2^N denote? Definition It denotes the collection of all subsets of N. Term How are the elements of 2^N called? Definition Coalitions Term What is the formal notation of a TU-game? Definition (N,v) where v : 2^N -> IR with v(0) = 0 Term What is a subset? Definition Set A is a subset of set B if it is contained inside B. This relationship is called inclusion or containment. Term How is function v called and what does it denote? Definition Characteristic function. For S is a subset of N, v(S) is called the worth or value of the coalition S. Term How to write formally that N is divided into two disjoint groups L and R? Definition N = L union R, L intersection R = 0 Term Assume two disjoint groups. Members of group 1 have one left hand glove and members of groups 2 have 1 right hand glove. A single glove is worth nothing, but a pair is worth 10 euros. Describe this situation formally. Definition v(S) = 10 euros * min{|L intersection N|, |R intersection N|} for all S element of 2^N