Competitive Games

Annotations:

• A Competitive Game is a game whose player's outcomes depend on the other player's actions.

1. Simultaneous Games

   Annotations:

   • Both competitors have to made their decisions simultaneously, that is, before any choice has been made in the game.
   1. Dominated Strategies

      Annotations:

      • A strategy is Dominated if there is another strategy for which there is a better payoff for the player.
   2. Dominant Strategies

      Annotations:

      • A strategy is Dominant if it gives the player the best possible payoff.
      1. Nash Equilibrium

         Annotations:

         • A Nash Equilibrium is a set of actions such that no player has incentive to change his strategy.
         • That implies that a Nash Equilibrium cannot contain Dominant Strategies at all.
         1. Prisoner's Dillema

            Annotations:

            • A Prisoner's Dillema
            1. Cooperation

               Annotations:

               • The Prisoner's Dillema is the main incentive for developing cooperation between players.
2. Sequential Games

   Annotations:

   • A Sequential Game is one in which player's action are take in an already known order.
   1. Backward Induction

      Annotations:

      • Backward Induction is a method of analyzing games through which player's action's are based on the last possible action of the game.
      1. Finite Repetition Games

         Annotations:

         • Backward Induction can be applied to games that have a known endpoint.