IE675 Game Theory
Lecture Note Set 6
Wayne F. Bialas1
Tuesday, April 1, 2003
6
6.1
DYNAMIC COOPERATIVE GAMES
Some introductory examples
Consider the following hierarchical game:
$G\QDPLFFRRSHUDWLYHJDPH
Federal Government
F
State Government
S
Local Governm
IE675 Game Theory
Lecture Note Set 5
Wayne F. Bialas12
Wednesday, March 23, 2005
5
5.1
STATIC COOPERATIVE GAMES
Some introductory examples
Consider a game with three players 1, 2 and 3. Let N = cfw_1, 2, 3 Suppose that
the players can freely form coalitio
IE675 Game Theory
Lecture Note Set 4
Wayne F. Bialas1
Thursday, March 6, 2003
4
4.1
UTILITY THEORY
Introduction
This section is really independent of the eld of game theory, and it introduces
concepts that pervade a variety of academic elds. It addresses
IE675 Game Theory
Lecture Note Set 3
Wayne F. Bialas1
Monday, March 10, 2003
3
N -PERSON GAMES
3.1 N -Person Games in Strategic Form
3.1.1
Basic ideas
We can extend many of the results of the previous chapter for games with N > 2
players.
Let Mi = cfw_1,
IE675 Game Theory
Lecture Note Set 2
Wayne F. Bialas1
Wednesday, January 19, 2005
2
TWO-PERSON GAMES
2.1
2.1.1
Two-Person Zero-Sum Games
Basic ideas
Denition 2.1. A game (in extensive form) is said to be zero-sum if and only if,
at each terminal vertex, t
IE675 Game Theory
Lecture Note Set 1
Wayne F. Bialas1
Wednesday, January 19, 2005
1
INTRODUCTION
1.1
What is game theory?
Game theory is the study of problems of conict and cooperation among independent
decision-makers.
Game theory deals with games of str