Game Theory refers to a framework applied in logical thinking and decision making. For business students, this is an important aspect to understand because businesses are all about decision making and these decisions can either bring down the business or lead to massive losses. For most beginners, however, understanding the core concepts behind game Theory can be very challenging and this is why many students dread game Theory assignments. There is no doubt that some of these assignments can be overly complex for students and it is understandable for them to struggle.
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Types Of Games In Game Theory
1 Cooperative/Non-Cooperative– In game Theory, a game is said to be cooperative if the players are able to form binding commitments and non-cooperative if they cannot form alliances.
2. Zero-Sum/Non-Zero Sum– In zero-sum games, the available resources can neither be increased or decreased by the players. Players only benefit at the expense of others and therefore the net benefit is zero.
3. Symmetric/Asymmetric– In a symmetric game, the payoffs for a particular strategy depend only on the other strategies employed and not on the individual players.
4. Simultaneous/Sequential Games– Simultaneous games are those in which both players move simultaneously and if they do not then the later players won't know about the earlier players' actions. Sequential games, on the other hand, are those in which later players have some information on previous players' actions. They can be categorized into perfect information or imperfect information.
5. Combinatorial Games– These are games in which finding the optimal strategy comes from the multiplicity of moves.
6. Discrete and Continuous Game– Discrete games are made of a finite number of players, moves, events outcomes, and strategies. Continuous games are the opposite.
7. Evolutionary Game Theory– This studies player who change their strategies over time according to the rules.
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