“SANTA MARIA CATHOLIC UNIVERSITY”

FACULTY OF PHYSICAL SCIENCES AND ENGINEERING

AND
FORMAL

PROFESSIONAL SCHOOL OF INDUSTRIAL ENGINEERING

PRACTICE TOPIC: Game Theory Questionnaire.

COURSE: Operational Research II.

LABORATORY GROUP: 06.

STUDENT:

Aranzamendi Salon, Goran.

2021

AREQUIPA – PERU
QUESTIONNAIRE
1. Define Game Theory.

Game theory is an area of applied mathematics that uses models to study

interactions in formalized incentive structures (so-called "games"). Game theory
has become an extremely important tool for economic theory and has contributed
to a more adequate understanding of human behavior when making decisions. Its
researchers study optimal strategies as well as the predicted and observed
behavior of individuals in games. Apparently different types of interaction may
actually present a similar incentive structure and, therefore, the same game can
be represented together a thousand times.
Originally developed as a tool for understanding economic behavior, game
theory is now used in many fields, as in
biology, sociology, political science, psychology, philosophy and sciences of
the
computing. It experienced substantial growth and was first formalized through
the work of John von Neumann and Oskar Morgenstern, before and during the
Cold War, largely due to its application to military strategy, in particular because
of the concept of mutually assured destruction. Since the 1970s, game theory has
been applied to animal behavior, including the development of species by natural
selection. Following games such as the Prisoner's Dilemma, in which widespread
selfishness disadvantages players, game theory has also attracted the attention of
computer science researchers, and is being used in artificial intelligence and
cybernetics.
Conflicts between rational beings who distrust each other, or the struggle
between competitors who interact and influence each other, who think and who
may even be capable of betraying each other, constitute the field of study of
game theory, which is based on rigorous mathematical analysis but which,
however, arises naturally when observing and analyzing a conflict from a rational
point of view. From the perspective of this theory, a "game" is a conflict situation
in which the opposing interests of individuals or institutions prevail, and in this
context one party, by making a decision, influences the decision that the other
will make; thus, the result of the conflict is determined by all the decisions made
by all the actors.
Game theory posits that there must be a rational way to play any “game” (or
negotiate a conflict), especially when there are many deceptive situations and
ulterior motives; thus, for example, the mutual anticipation of each other’s
intentions, which occurs in games such as chess or poker, gives rise to
theoretically infinite chains of reasoning, which can also be carried over into the
realm of real, complex conflict resolution. In short, and as discussed, individuals,
when interacting in a conflict, will obtain results that are in some way totally
dependent on such interaction.
2. What is a Strategy?

Strategy is a plan for directing an affair. A strategy consists of a series of

 planned actions that help make decisions and achieve the best possible results.
The strategy is aimed at achieving an objective by following a course of action.
A strategy comprises a series of tactics that are more concrete measures to
achieve one or more objectives.
3. What is a pure strategy?
A pure strategy is a term used to designate a type of strategy in game theory.
Each player has a set of strategies at his disposal. If a player chooses an action
with probability 1 then he is playing a pure strategy. This differentiates it from
mixed strategy, where individual players choose a probability distribution over
many actions.
Because it is a particular case of mixed strategies, only pure strategies were
studied at first. One of the first to do so was Antoine Augustin Cournot in his
work on oligopolies, where in a model of firm competition he found Nash
equilibria in pure strategies.
4. What is a mixed strategy?
In game theory, a mixed strategy, sometimes also called a mixed strategy, is a
generalization of pure strategies, used to describe the random selection among
several possible pure strategies, which always determines a probability
distribution over the strategy vector of each player. A fully mixed strategy is one
in which the player assigns a strictly positive probability to each pure strategy.
Fully mixed strategies are important for equilibrium refinement.

5. What do you understand by negotiation?

Negotiation is an interaction effort aimed at generating benefits.1
Its objectives may be: to resolve points of difference, to gain advantages for a
person or group, to design results to satisfy various interests, to improve current
situations, to resolve conflicts or to reach a neutral point of information.
This factor is very important, since it refers to the human reality of all parties.
involved, with
their
different personalities, realities, needs, emotions and ways of thinking. In a
negotiation, two or more people are trying to generate benefits for themselves,
for someone else, or for an organization they represent, but they do so based on
their own human reality, with its emotional and psychological implications, with
their ways of thinking and patterns of behavior. This makes this interaction an
essential factor in negotiations and from which many of the situations that
usually or may arise within them are derived. This also allows us to understand
what is happening within a negotiation and to foresee ways to perform within
them in the best way so that you can connect at our disposal.
A negotiation must leave both parties partially satisfied, this indicates that the
procedure was carried out correctly since neither side obtains everything it wants
nor loses everything it has.
6. What are the elements of game theory?
The elements present in every game are: players, actions, information, strategies,
rewards and results.
 • Players: the people who play and make decisions trying to obtain the best
possible result, that is, maximize their utility.
• Action: is one of the options that the player has available to achieve the
desired objective. An action set is all the available actions. The order of play
determines when these actions are available.
• Information: is the knowledge, at a given time, of the values of the different
variables, the different values that the player believes are possible.
• Strategies: is a set of actions to take at each moment of the game given the
available information. A strategy set is all the strategies available at a given time.
• Reward: is the utility that players receive upon completing the game, the
evaluation after completing the action on whether the desired objective was
achieved. The expected reward is also important, since it is this that actually
motivates the action.
• Outcome: These are the conclusions that the modeler draws once the game has
been played.

7. What is the difference between non-cooperative game theory and game

theory?
cooperatives?
In non-cooperative or competitive games, each player seeks his or her maximum
benefit, and any type of prior agreement between players is expressly prohibited.
In non-cooperative or competitive games, each player seeks his or her maximum
benefit, and any type of prior agreement between players is expressly prohibited.
This branch of Game Theory studies the different strategies that each of the
players can employ, and in the games of this category there is a payoff function
associated with each player, which depends on the different strategies that are
employed.
In cooperative games, players have mechanisms that allow them to make binding
agreements before the game. That is, players can cooperate by forming coalitions
of players in order to obtain greater benefits. In a cooperative game it is not
necessary to analyze the players' strategies, since they will act in the way that
achieves the greatest benefit. The main objective of Cooperative Game Theory is
to analyze the importance or influence that each player has had in obtaining that
benefit, in order to propose an appropriate distribution of benefits.
8. When is it said that a game is played with perfect information?
In game theory, a game of perfect information is one in which the players know
everything they could ever want to know about what has happened from the
beginning of the game until they have to make a move.
Perfect information games are a small subset of games. In this type of game each
information set contains a single node.
Chess is the best-known example of this type of game. Parcheesi and Monopoly
are also games of perfect information, but with an element of chance, since it is
necessary to roll a dice.

9. What is a zero-sum game?

A zero-sum game describes a situation in which one participant's gain or loss is
exactly balanced by the other participants' gains or losses.
 It is called this because if you add up the total winnings of the participants and
subtract the total losses, the result is zero. Go, poker, and bear card are examples
of zero-sum games. Zero-sum is a special case of the more general constant-sum
case where all players' profits and losses add up to the same value, because one
wins exactly as much as the opponent loses.

10. What are the benefits of applying game theory?

The probability of emerging victorious in a sports competition, an electoral
contest or simply situations that occur in everyday life do not always depend on
chance or physical abilities. Strategies often play an important role in the
outcome. That is, when they are good they help us increase the probability of
success and vice versa.
Game theory offers an explanation in which a favorable result can be obtained
through the use of strategies. This tool allows to analyze interactive optimization
problems where conflicts of interest, strategies and traps are involved.