gametheory1

# gametheory1 - Game Theory A game in normal form(strategic...

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Game Theory A game in normal form (strategic form) is composed of: 1. A set of players, i =1 ; :::; n 2. For each player, a set of possible strategies, S i 3. An outcome function, assigning an outcome to every possible combination of strategies g : S 1 £¢¢¢£ S n ! X 4. For each player, a utility function, which assigns utility to outcomes, u i : X !<

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Notes: The speci¯cation of the possible strategies, and the outcome function g , are what we usually think of as the rules of the game. If we do not specify the utility function, we have a game form instead of a game. For example, it is common to think of an auction in terms of who are the bidders, how the winner is determined, and what price is paid. This is an example of a game form. If we also specify the utility functions of the bidders (what informat iontheyhaveaboutthequa l ityoftheob ject , how much they would value consuming an object of a given quality, etc.), then we would have a game.
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gametheory1 - Game Theory A game in normal form(strategic...

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