Pay-off matrix
Decision analysis tool that summarizes pros and cons of a decision in a tabular form. It lists payoffs (negative or positive returns) associated with all possible combinations of alternative actions and external conditions.
Nash-equilibrium
If both parties choose the best solution for themselves and this can give one solution we have a Nash-equilibrium. This doesn't means that this is the optimal solution
Kind of Games
- Static vs Dynamic
Static: you can take only one shot
Dynamic (or repeated): you keep on taking decisions
- Simultaneous vs Sequential
Simeltaneous: both players take their decision on the same time
Sequential: the players decide after each other
- Zero sum vs Variable Sum
Zero sum: the result is constant
Variable sum (or non-zero-sum): the total result can differ
- Cooperative vs Non-cooperative
Cooperative: players may cooperate
Non-cooperative: players cannot cooperate
Kind of strategies
- Dominant strategy
The strategy which is the best one for you, whatever the other player does.
- Dominated strategy
There is a strategy that would be better for you, whatever the other player does.
- Maxi-min strategy
Choose the best solution amongst the worst ones.
- Mini-max strategy
- Maxi-max strategy
Choose the best solution amongst the best ones.
- Tit-for-tat strategy
Strategy in which you first act cooperatively and then take the same decisions as your opponent.
- Trigger strategy
