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E-Commerce
Game Theory
8
Computer Science
Graduate
02/17/2009

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Term
Game theory
Definition
General framework for multiagent behavior; attempts to describe what happens when several rational agents face interacting decisions
Term
Normal or strategic form
Definition
Expressing payoffs as function of joint policy; represented as an n-dimensional matrix
Term
Extensive form
Definition
Represents policies as branching sequence (tree) of action choices; payoffs expressed as leaf values
Term
Nash equilibrium
Definition
An array of strategies, one for each player, such that each player's strategy is optimal, given that that the other players are playing their designated strategies
Term
Pareto optima
Definition
Cannot improve one player's payoff without decreasing another's
Term
Dominant strategies
Definition
If for all strategies for the other players in the set of the possible strategies for other players, s is better than s prime, then s strictly dominates; for weak dominance just required that s is equal or better
Term
Approximate equilibrium
Definition
No agent can improve by more than "E" by deviating to another strategy; max gain from deviation "E" also called regret
Term
Games of complete information
Definition
Everyone knows all the actions strategies
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