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+ | ====== Competitive Strategy ====== | ||
+ | |||
+ | * Source: https:// | ||
+ | * From **Université Louis-et-Maximilien de Munich (LMU)**, by **Tobias Kretschmer** | ||
+ | |||
+ | ===== Take care of your competitors ===== | ||
+ | |||
+ | ==== Simultaneous Games ==== | ||
+ | |||
+ | * A strategy is a player' | ||
+ | * Important parts of a game are: **players, actions, payoffs, and rules**. | ||
+ | |||
+ | * You can usually rely on the other players having a **dominant strategy**. | ||
+ | * **Dominated strategy**: a strategy that never does better that a given other strategy (eg. the dominant one). | ||
+ | | ||
+ | * When we have a game matrix then the idea is to eliminate the dominated strategies. | ||
+ | |||
+ | * **Nash equilibrium** = a combination of strategies such as no player can deviate unilaterally from his current strategy to improve his payoffs. | ||
+ | * We can have a **Nash Equilibrium** without every player having a dominant strategy. | ||
+ | * Prisoner' | ||
+ | | ||
+ | ==== Sequential Games ==== | ||
+ | |||
+ | * Sequential games == Dynamic games (eg. games with a time aspect). | ||
+ | * We draw **game trees** in that case. | ||
+ | * First decision start the game | ||
+ | * Then for each decision, the other player can take its own decision. | ||
+ | | ||
+ | * **backward induction** : simplification of sequential game. | ||
+ | * eliminating options that do not maximize profit. | ||