1.5 KiB
1.5 KiB
Game Theory
Domains
Auction Theory
auction-theory is a subset of game theory
Reverse Auction
In a reverse auction, bidders compete for the right to sell a product or service.
Sealed-Bid Auction
Opposite of a conventional "open" auction, in a sealed-bid auction, bid prices are hidden from the bidders.
Terminology
"Solved" Games
Symmetry
Typical Games
Chicken
| Player A \ Player B | Player B: Back Down | Player B: Hold Firm |
|---|---|---|
| Player A: Back Down | Tie \ Tie | Lose face \ Gain status |
| Player A: Hold Firm | Gain status \ Lose face | Die \ Die |
Prisoner's Dilemma
| Prisoner A \ Prisoner B | Prisoner B: Cooperate | Prisoner B: Defect |
|---|---|---|
| Prisoner A: Cooperate | Serve 1 year \ Serve 1 year | Serve 3 years \ Go free |
| Prisoner A: Defect | Go free \ Serve 3 years | Serve 2 years \ Serve 2 years |
Stag Hunt
| Hunter A \ Hunter B | Hunter B: Hunt Stag | Hunter B: Hunt Hare |
|---|---|---|
| Hunter A: Hunt Stag | Eat stag \ Eat stag | Go hungry \ Eat hare |
| Hunter A: Hunt Hare | Eat hare \ Go hungry | Eat hare \ Eat hare |