CONTENTS

1. Computational game theory 2. Game theory 3. Features 4. What is game? 5. Representation of game 6. Types of game 7. Application Submitted by Nishiya vijayan S1 MTech R#12 SNGCE

COMPUTATIONAL GAME THEORY

The theory of computation or computer theory is the branch of computer science and mathematics that deals with whether and how efficiently problems can be solved on a model of computation, using an algorithm. The field is divided into two major branches: computability theory and complexity theory, but both branches deal with formal models of computation. The theory of computation can be considered the creation of models of all kinds in the field of computer science. Therefore mathematics and logic are used

GAME THEORY
Game theory studies strategic interaction between individuals in situations called games. Classes of these games have been given names. Game theory can be regarded as a multiagent decision problem. This means there are many people intending for limited rewards/payoffs. They have to make certain moves on which their payoff depends. These people have to follow certain rules while making these moves. Games can have several features, a few of the most common given

Number of players: Each person who makes a choice in a game or who receives a payoff from the outcome of those choices is a player. Strategies per player: In a game each player chooses from a set of possible actions, known as strategies. Number of pure strategy Nash equilibrium: Nash equilibrium is a set of strategies which represents mutual best responses to the other strategies. Nash equilibrium (named after John Forbes Nash, who proposed it) is a solution concept of a game involving two or more players, in which each player is assumed to know the equilibrium strategies of the other players, and no player has anything to gain by changing only his or her own strategy unilaterally. If each player has chosen a strategy and no player can benefit by changing his or her strategy while the other players keep their unchanged, then the current set of strategy choices and the corresponding payoffs constitute Nash equilibrium. Sequential game: A game is sequential if one player performs her/his actions after another; otherwise the game is a simultaneous move game. Perfect information: A game has perfect information if it is a sequential game and every player knows the strategies chosen by the players who preceded them. Constant sum: A game is constant sum if the sum of the payoffs to every player is the same for every set of strategies.

WHAT IS A GAME?
A game has the following
1. Set of players

2. Set of rules 3. Set of Strategies 4. Set of Outcomes.

D = { Pi | 1 <= i <= n} R Si for each player Pi O

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5. Pay off

ui (o) for each player i and for each outcome o e O

Eg: Coin Matching Game Coin Matching Game: Two players choose independently either Head or Tail and report it to a central authority. If both choose the same side of the coin, player 1 wins, otherwise 2 wins. A game has the following:1. Set of Players

The two players who are choosing either Head or Tail in the Coin Matching Game form the set of players i.e. P= {P1, P2}
2. Set of Rules

There are certain rules which each player has to follow while playing the game. Each player can safely assume that others are following these rules. In coin matching game each player can choose either Head or Tail. He has to act independently and made his selection only once. Player 1 wins if both selections are the same otherwise player 2 wins. These form the Rule set R for the Coin Matching Game. 3. Set of Strategies Si for each player Pi In Matching coins S1 = {H, T} and S2 = {H, T} are the strategies of the two players. Which means each of them can choose either Head or Tail. 3. Set of Outcomes: O In matching Coins its {Loss, Win} for both players. This is a function of the strategy profile selected. In our example S1 x S2 = {(H, H), (H, T), (T, H), (T, T)} is the strategy profile. clearly first and last are win situation for first player while the middle two are win cases for the second player. 4. Pay off: ui(o) for each player I and for each outcome in coin matching game u1(Win) =100 u1(Loss) = 0 u2(Win) u2 (Loss) = 0 =100

Both the players would like to maximize their payoffs (rationality) so both will try to win.
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REPRESENTATION OF GAMES Extensive form

An extensive form game

Games here are often presented as trees. Here each node represents a point of choice for a player. The player is specified by a number listed by the vertex. The lines out of the vertex represent a possible action for that player. The payoffs are specified at the bottom of the tree.

Normal form
The normal /strategic form game is usually represented by a matrix which shows the players,

strategies, and payoffs. The first number is the payoff received by the row player1the second is the payoff for the column player2.

Player 2 chooses Left

Player chooses Right

Player 1 chooses Up Player 1 chooses Dow n

4, 3

1, 1

0, 0

3, 4

Normal form or payoff matrix of a 2-player, 2-strategy game

Characteristic function form

A characteristic function form game (also known as a TU-game) is given as a pair (N,v), where N denotes a set of players and is a characteristic function.

TYPES OF GAMES
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COOPERATIVE OR NON-COOPERATIVE: Often it is assumed that communication among

players is allowed in cooperative games, but not in non cooperative ones. Of the two types of games, no cooperative games are able to model situations to the finest details, producing accurate results. Cooperative games focus on the game at large.
SYMMETRIC AND ASSYMMETRIC GAME A symmetric game is a game where the payoffs for playing a particular strategy depend only on the other strategies employed, not on who is playing them. If the identities of the players can be changed without changing the payoff to the strategies, then a game is symmetric Eg: chicken, the prisoner's dilemma, Asymmetric games are games where there are not identical strategy sets for both players Eg: ultimatum game ZERO SUM GAME AND NONZERO SUM GAME In zero-sum games the total benefit to all players in the game, for every combination of strategies, always adds to zero. Eg: Poker In non zero sum game outcomes have net results greater or less than zero.. Eg: prisoner's dilemma SIMULTANEOUS AND SEQUENTIAL Simultaneous games are games where both players move simultaneously. Sequential /dynamic games are games where later players have some knowledge about earlier actions. This need not be perfect information about every action of earlier players; it might be very little knowledge. DISCRETE AND CONTINUOUS GAMES Much of game theory is concerned with finite, discrete games, which have a finite number of players, moves, events, outcomes, etc. Eg: Coin matching game Continuous games allow players to choose a strategy from a continuous strategy set. Eg: Cournot competition

ONE-PLAYER AND MANY-PLAYER GAMES

Individual decision problems are sometimes considered one-player games. While these situations are not game theoretical, they are modeled using many of the same tools within the discipline of decision theory. It is only with two or more players that a problem becomes game theoretical.

APPLICATIONS
. It was initially developed in economics to understand a large collection of economic behaviors, including behaviors of firms, markets, and consumers .Game theory has been used to study a wide variety of human and animal behaviors The application of game theory to political science is focused in the overlapping areas of fair division, political economy, public choice, war bargaining, positive political theory, and social choice theory. In each of these areas, researchers have developed game theoretic models in which the players are often voters, states, special interest groups, and politicians. 5

Computer scientists have used games to model interactive computations. Also, game theory provides a theoretical basis to the field of multi-agent systems.