Some Game Theory Terminology - UNC-Wilmington Department of...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
UNC-Wilmington ECN 321 Department of Economics and Finance Dr. Chris Dumas Some Basic Game Theory Terminology Game Theory: A theory of optimal decision making by players. Game Components Player : An individual or group whose optimal decisions depend on the decisions of other individuals or groups. (2-player game, 3-player game, n-player game) Game: A situation involving 2 or more players. o Strategy Game: A game in which players are aware of the interdependencies among players and make decisions that take the interdependencies into account. o Cooperative Game: A strategy game in which players can make enforceable contracts with one another. o Non-cooperative Game: A strategy game in which players cannot make enforceable contracts with one another. Action: One of the alternative choices available to a player who is making a decision. Payoff: The level of a player's objective achieved through his actions (e.g. the level of satisfaction/utility achieved by a consumer, or the level of profit achieved by a producer). Nature:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/22/2009 for the course ECN 321 taught by Professor Dumas during the Fall '08 term at University of North Carolina Wilmington.

Page1 / 2

Some Game Theory Terminology - UNC-Wilmington Department of...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online