# Shared Flashcard Set

## Details

Game Theory
Question about Game Theory course at Univeristy of tilburg
14
Economics
09/16/2007

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) wherev : 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. [image]
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
Supporting users have an ad free experience!