M7-Quantitative Decision Methods-S5 - Game Theory
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Game Theory is the selection of a strategy given the likely conlflict of interest between two or more decision makers. In the so called pay off matrix below each number represents the payment a player gains when selecting an option (-2 means a gain for player B):
| B1 | B2 | ||
|---|---|---|---|
| Game player A | A1 | 3 | 4 |
| A2 | 1 |
* In a Pure strategy game each player will select a single strategy.
- In a Mixed strategy game the players will select between different strategies.
See also: Game Theory Training Yale
