Game Theory Lecture Notes
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A History of Von Neumann and Morgenstern's Theory of Games, 12Pt Escolha Sob Incerteza Ax
Marcos Thiago Graciani Axiomatic choice under uncertainty: a history of von Neumann and Morgenstern’s Theory of Games Escolha sob incerteza axiomática: uma história do Theory of Games de von Neumann e Morgenstern São Paulo 2019 Prof. Dr. Vahan Agopyan Reitor da Universidade de São Paulo Prof. Dr. Fábio Frezatti Diretor da Faculdade de Economia, Administração e Contabilidade Prof. Dr. José Carlos de Souza Santos Chefe do Departamento de Economia Prof. Dr. Ariaster Baumgratz Chimeli Coordenador do Programa de Pós-Graduação em Economia Marcos Thiago Graciani Axiomatic choice under uncertainty: a history of von Neumann and Morgenstern’s Theory of Games Escolha sob incerteza axiomática: uma história do Theory of Games de von Neumann e Morgenstern Dissertação de Mestrado apresentada ao Departamento de Economia da Faculdade de Economia, Administração e Contabilidade da Universidade de São Paulo (FEA-USP) como requisito parcial à obtenção do título de Mestre em Ciências. Área de Concentração: Teoria Econômica. Universidade de São Paulo — USP Faculdade de Economia, Administração e Contabilidade Programa de Pós-Graduação Orientador: Pedro Garcia Duarte Versão Corrigida (A versão original está disponível na biblioteca da Faculdade de Economia, Administração e Contabilidade.) São Paulo 2019 FICHA CATALOGRÁFICA Elaborada pela Seção de Processamento Técnico do SBD/FEA com dados inseridos pelo autor. Graciani, Marcos Thiago. Axiomatic choice under uncertainty: a history of von Neumann and Morgenstern’s Theory of Games / Marcos Thiago Graciani. – São Paulo, 2019. 133p. Dissertação (Mestrado) – Universidade de São Paulo, 2019. Orientador: Pedro Garcia Duarte. 1. História da teoria dos jogos 2. Axiomática 3. Incerteza 4. Von Neumann e Morgenstern I. -
Frequently Asked Questions in Mathematics
Frequently Asked Questions in Mathematics The Sci.Math FAQ Team. Editor: Alex L´opez-Ortiz e-mail: [email protected] Contents 1 Introduction 4 1.1 Why a list of Frequently Asked Questions? . 4 1.2 Frequently Asked Questions in Mathematics? . 4 2 Fundamentals 5 2.1 Algebraic structures . 5 2.1.1 Monoids and Groups . 6 2.1.2 Rings . 7 2.1.3 Fields . 7 2.1.4 Ordering . 8 2.2 What are numbers? . 9 2.2.1 Introduction . 9 2.2.2 Construction of the Number System . 9 2.2.3 Construction of N ............................... 10 2.2.4 Construction of Z ................................ 10 2.2.5 Construction of Q ............................... 11 2.2.6 Construction of R ............................... 11 2.2.7 Construction of C ............................... 12 2.2.8 Rounding things up . 12 2.2.9 What’s next? . 12 3 Number Theory 14 3.1 Fermat’s Last Theorem . 14 3.1.1 History of Fermat’s Last Theorem . 14 3.1.2 What is the current status of FLT? . 14 3.1.3 Related Conjectures . 15 3.1.4 Did Fermat prove this theorem? . 16 3.2 Prime Numbers . 17 3.2.1 Largest known Mersenne prime . 17 3.2.2 Largest known prime . 17 3.2.3 Largest known twin primes . 18 3.2.4 Largest Fermat number with known factorization . 18 3.2.5 Algorithms to factor integer numbers . 18 3.2.6 Primality Testing . 19 3.2.7 List of record numbers . 20 3.2.8 What is the current status on Mersenne primes? . -
Game Theoretic Interaction and Decision: a Quantum Analysis
games Article Game Theoretic Interaction and Decision: A Quantum Analysis Ulrich Faigle 1 and Michel Grabisch 2,* 1 Mathematisches Institut, Universität zu Köln, Weyertal 80, 50931 Köln, Germany; [email protected] 2 Paris School of Economics, University of Paris I, 106-112, Bd. de l’Hôpital, 75013 Paris, France * Correspondence: [email protected]; Tel.: +33-144-07-8744 Received: 12 July 2017; Accepted: 21 October 2017; Published: 6 November 2017 Abstract: An interaction system has a finite set of agents that interact pairwise, depending on the current state of the system. Symmetric decomposition of the matrix of interaction coefficients yields the representation of states by self-adjoint matrices and hence a spectral representation. As a result, cooperation systems, decision systems and quantum systems all become visible as manifestations of special interaction systems. The treatment of the theory is purely mathematical and does not require any special knowledge of physics. It is shown how standard notions in cooperative game theory arise naturally in this context. In particular, states of general interaction systems are seen to arise as linear superpositions of pure quantum states and Fourier transformation to become meaningful. Moreover, quantum games fall into this framework. Finally, a theory of Markov evolution of interaction states is presented that generalizes classical homogeneous Markov chains to the present context. Keywords: cooperative game; decision system; evolution; Fourier transform; interaction system; measurement; quantum game 1. Introduction In an interaction system, economic (or general physical) agents interact pairwise, but do not necessarily cooperate towards a common goal. However, this model arises as a natural generalization of the model of cooperative TU games, for which already Owen [1] introduced the co-value as an assessment of the pairwise interaction of two cooperating players1. -
The Monty Hall Problem in the Game Theory Class
The Monty Hall Problem in the Game Theory Class Sasha Gnedin∗ October 29, 2018 1 Introduction Suppose you’re on a game show, and you’re given the choice of three doors: Behind one door is a car; behind the others, goats. You pick a door, say No. 1, and the host, who knows what’s behind the doors, opens another door, say No. 3, which has a goat. He then says to you, “Do you want to pick door No. 2?” Is it to your advantage to switch your choice? With these famous words the Parade Magazine columnist vos Savant opened an exciting chapter in mathematical didactics. The puzzle, which has be- come known as the Monty Hall Problem (MHP), has broken the records of popularity among the probability paradoxes. The book by Rosenhouse [9] and the Wikipedia entry on the MHP present the history and variations of the problem. arXiv:1107.0326v1 [math.HO] 1 Jul 2011 In the basic version of the MHP the rules of the game specify that the host must always reveal one of the unchosen doors to show that there is no prize there. Two remaining unrevealed doors may hide the prize, creating the illusion of symmetry and suggesting that the action does not matter. How- ever, the symmetry is fallacious, and switching is a better action, doubling the probability of winning. There are two main explanations of the paradox. One of them, simplistic, amounts to just counting the mutually exclusive cases: either you win with ∗[email protected] 1 switching or with holding the first choice. -
Introduction to Probability
Massachusetts Institute of Technology Course Notes 10 6.042J/18.062J, Fall ’02: Mathematics for Computer Science November 4 Professor Albert Meyer and Dr. Radhika Nagpal revised November 6, 2002, 572 minutes Introduction to Probability 1 Probability Probability will be the topic for the rest of the term. Probability is one of the most important sub- jects in Mathematics and Computer Science. Most upper level Computer Science courses require probability in some form, especially in analysis of algorithms and data structures, but also in infor- mation theory, cryptography, control and systems theory, network design, artificial intelligence, and game theory. Probability also plays a key role in fields such as Physics, Biology, Economics and Medicine. There is a close relationship between Counting/Combinatorics and Probability. In many cases, the probability of an event is simply the fraction of possible outcomes that make up the event. So many of the rules we developed for finding the cardinality of finite sets carry over to Proba- bility Theory. For example, we’ll apply an Inclusion-Exclusion principle for probabilities in some examples below. In principle, probability boils down to a few simple rules, but it remains a tricky subject because these rules often lead unintuitive conclusions. Using “common sense” reasoning about probabilis- tic questions is notoriously unreliable, as we’ll illustrate with many real-life examples. This reading is longer than usual . To keep things in bounds, several sections with illustrative examples that do not introduce new concepts are marked “[Optional].” You should read these sections selectively, choosing those where you’re unsure about some idea and think another ex- ample would be helpful. -
Strong Stackelberg Reasoning in Symmetric Games: an Experimental
Strong Stackelberg reasoning in symmetric games: An experimental ANGOR UNIVERSITY replication and extension Pulford, B.D.; Colman, A.M.; Lawrence, C.L. PeerJ DOI: 10.7717/peerj.263 PRIFYSGOL BANGOR / B Published: 25/02/2014 Publisher's PDF, also known as Version of record Cyswllt i'r cyhoeddiad / Link to publication Dyfyniad o'r fersiwn a gyhoeddwyd / Citation for published version (APA): Pulford, B. D., Colman, A. M., & Lawrence, C. L. (2014). Strong Stackelberg reasoning in symmetric games: An experimental replication and extension. PeerJ, 263. https://doi.org/10.7717/peerj.263 Hawliau Cyffredinol / General rights Copyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights. • Users may download and print one copy of any publication from the public portal for the purpose of private study or research. • You may not further distribute the material or use it for any profit-making activity or commercial gain • You may freely distribute the URL identifying the publication in the public portal ? Take down policy If you believe that this document breaches copyright please contact us providing details, and we will remove access to the work immediately and investigate your claim. 23. Sep. 2021 Strong Stackelberg reasoning in symmetric games: An experimental replication and extension Briony D. Pulford1, Andrew M. Colman1 and Catherine L. Lawrence2 1 School of Psychology, University of Leicester, Leicester, UK 2 School of Psychology, Bangor University, Bangor, UK ABSTRACT In common interest games in which players are motivated to coordinate their strate- gies to achieve a jointly optimal outcome, orthodox game theory provides no general reason or justification for choosing the required strategies. -
Game, Set, and Match Carl W
Game, Set, and Match Carl W. Lee September 2016 Note: Some of the text below comes from Martin Gardner's articles in Scientific American and some from Mathematical Circles by Fomin, Genkin, and Itenberg. 1 1 Fifteen This is a two player game. Take a set of nine cards, numbered one (ace) through nine. They are spread out on the table, face up. Players alternately select a card to add their hands, which they keep face up in front of them. The goal is to achieve a subset of three cards in your hand so that the values of these three cards sum to exactly fifteen. (The ace counts as 1.) This is an example of a game that is isomorphic to (the \same as") a well-known game: Tic-Tac-Toe. Number the cells of a tic-tac-toe board with the integers from 1 to 9 arranged in the form of a magic square. 8 1 6 3 5 7 4 9 2 Then winning combinations correspond exactly to triples of numbers that sum to 15. This is a combinatorial two person game (but one that permits ties). There is no hidden information (e.g., cards that one player has that the other cannot see) and no random elements (e.g., rolling of dice). 2 2 Ones and Twos Ten 1's and ten 2's are written on a blackboard. In one turn, a player may erase (or cross out) any two numbers. If the two numbers erased are identical, they are replaced with a single 2. -
Introduction to Probability 1 Monty Hall
Massachusetts Institute of Technology Course Notes, Week 12 6.042J/18.062J, Fall ’05: Mathematics for Computer Science November 21 Prof. Albert R. Meyer and Prof. Ronitt Rubinfeld revised November 29, 2005, 1285 minutes Introduction to Probability Probability is the last topic in this course and perhaps the most important. Many algo rithms rely on randomization. Investigating their correctness and performance requires probability theory. Moreover, many aspects of computer systems, such as memory man agement, branch prediction, packet routing, and load balancing are designed around probabilistic assumptions and analyses. Probability also comes up in information theory, cryptography, artificial intelligence, and game theory. Beyond these engineering applica tions, an understanding of probability gives insight into many everyday issues, such as polling, DNA testing, risk assessment, investing, and gambling. So probability is good stuff. 1 Monty Hall In the September 9, 1990 issue of Parade magazine, the columnist Marilyn vos Savant responded to this letter: Suppose you’re on a game show, and you’re given the choice of three doors. Behind one door is a car, behind the others, goats. You pick a door, say number 1, and the host, who knows what’s behind the doors, opens another door, say number 3, which has a goat. He says to you, ”Do you want to pick door number 2?” Is it to your advantage to switch your choice of doors? Craig. F. Whitaker Columbia, MD The letter roughly describes a situation faced by contestants on the 1970’s game show Let’s Make a Deal, hosted by Monty Hall and Carol Merrill. -
Economics 201B Economic Theory (Spring 2021) Strategic Games
Economics 201B Economic Theory (Spring 2021) Strategic Games Topics: terminology and notations (OR 1.7), games and solutions (OR 1.1-1.3), rationality and bounded rationality (OR 1.4-1.6), formalities (OR 2.1), best-response (OR 2.2), Nash equilibrium (OR 2.2), 2 2 examples × (OR 2.3), existence of Nash equilibrium (OR 2.4), mixed strategy Nash equilibrium (OR 3.1, 3.2), strictly competitive games (OR 2.5), evolution- ary stability (OR 3.4), rationalizability (OR 4.1), dominance (OR 4.2, 4.3), trembling hand perfection (OR 12.5). Terminology and notations (OR 1.7) Sets For R, ∈ ≥ ⇐⇒ ≥ for all . and ⇐⇒ ≥ for all and some . ⇐⇒ for all . Preferences is a binary relation on some set of alternatives R. % ⊆ From % we derive two other relations on : — strict performance relation and not  ⇐⇒ % % — indifference relation and ∼ ⇐⇒ % % Utility representation % is said to be — complete if , or . ∀ ∈ % % — transitive if , and then . ∀ ∈ % % % % can be presented by a utility function only if it is complete and transitive (rational). A function : R is a utility function representing if → % ∀ ∈ () () % ⇐⇒ ≥ % is said to be — continuous (preferences cannot jump...) if for any sequence of pairs () with ,and and , . { }∞=1 % → → % — (strictly) quasi-concave if for any the upper counter set ∈ { ∈ : is (strictly) convex. % } These guarantee the existence of continuous well-behaved utility function representation. Profiles Let be a the set of players. — () or simply () is a profile - a collection of values of some variable,∈ one for each player. — () or simply is the list of elements of the profile = ∈ { } − () for all players except . ∈ — ( ) is a list and an element ,whichistheprofile () . -
ECONS 424 – STRATEGY and GAME THEORY MIDTERM EXAM #2 – Answer Key
ECONS 424 – STRATEGY AND GAME THEORY MIDTERM EXAM #2 – Answer key Exercise #1. Hawk-Dove game. Consider the following payoff matrix representing the Hawk-Dove game. Intuitively, Players 1 and 2 compete for a resource, each of them choosing to display an aggressive posture (hawk) or a passive attitude (dove). Assume that payoff > 0 denotes the value that both players assign to the resource, and > 0 is the cost of fighting, which only occurs if they are both aggressive by playing hawk in the top left-hand cell of the matrix. Player 2 Hawk Dove Hawk , , 0 2 2 − − Player 1 Dove 0, , 2 2 a) Show that if < , the game is strategically equivalent to a Prisoner’s Dilemma game. b) The Hawk-Dove game commonly assumes that the value of the resource is less than the cost of a fight, i.e., > > 0. Find the set of pure strategy Nash equilibria. Answer: Part (a) • When Player 2 (in columns) chooses Hawk (in the left-hand column), Player 1 (in rows) receives a positive payoff of by paying Hawk, which is higher than his payoff of zero from playing Dove. − Therefore, for Player2 1 Hawk is a best response to Player 2 playing Hawk. Similarly, when Player 2 chooses Dove (in the right-hand column), Player 1 receives a payoff of by playing Hawk, which is higher than his payoff from choosing Dove, ; entailing that Hawk is Player 1’s best response to Player 2 choosing Dove. Therefore, Player 1 chooses2 Hawk as his best response to all of Player 2’s strategies, implying that Hawk is a strictly dominant strategy for Player 1. -
The Monty Hall Problem
The Monty Hall Problem Richard D. Gill Mathematical Institute, University of Leiden, Netherlands http://www.math.leidenuniv.nl/∼gill 17 March, 2011 Abstract A range of solutions to the Monty Hall problem is developed, with the aim of connecting popular (informal) solutions and the formal mathematical solutions of in- troductory text-books. Under Riemann's slogan of replacing calculations with ideas, we discover bridges between popular solutions and rigorous (formal) mathematical solutions by using various combinations of symmetry, symmetrization, independence, and Bayes' rule, as well as insights from game theory. The result is a collection of intuitive and informal logical arguments which can be converted step by step into formal mathematics. The Monty Hall problem can be used simultaneously to develop probabilistic intuition and to give a deeper understanding of the paradox, not just to provide a routine exercise in computation of conditional probabilities. Simple insights from game theory can be used to prove probability inequalities. Acknowledgement: this text is the result of an evolution through texts written for three internet encyclopedias (wikipedia.org, citizendium.org, statprob.com) and each time has benefitted from the contributions of many other editors. I thank them all, for all the original ideas in this paper. That leaves only the mistakes, for which I bear responsibility. 1 Introduction Imagine you are a guest in a TV game show. The host, a certain Mr. Monty Hall, shows you three large doors and tells you that behind one of the doors there is a car while behind the other two there are goats. You want to win the car. -
Turing Learning with Nash Memory
Turing Learning with Nash Memory Machine Learning, Game Theory and Robotics Shuai Wang Master of Science Thesis University of Amsterdam Local Supervisor: Dr. Leen Torenvliet (University of Amsterdam, NL) Co-Supervisor: Dr. Frans Oliehoek (University of Liverpool, UK) External Advisor: Dr. Roderich Groß (University of Sheffield, UK) ABSTRACT Turing Learning is a method for the reverse engineering of agent behaviors. This approach was inspired by the Turing test where a machine can pass if its behaviour is indistinguishable from that of a human. Nash memory is a memory mechanism for coevolution. It guarantees monotonicity in convergence. This thesis explores the integration of such memory mechanism with Turing Learning for faster learning of agent behaviors. We employ the Enki robot simulation platform and learns the aggregation behavior of epuck robots. Our experiments indicate that using Nash memory can reduce the computation time by 35.4% and results in faster convergence for the aggregation game. In addition, we present TuringLearner, the first Turing Learning platform. Keywords: Turing Learning, Nash Memory, Game Theory, Multi-agent System. COMMITTEE MEMBER: DR.KATRIN SCHULZ (CHAIR) PROF. DR.FRANK VAN HARMELEN DR.PETER VAN EMDE BOAS DR.PETER BLOEM YFKE DULEK MSC MASTER THESIS,UNIVERSITY OF AMSTERDAM Amsterdam, August 2017 Contents 1 Introduction ....................................................7 2 Background ....................................................9 2.1 Introduction to Game Theory9 2.1.1 Players and Games................................................9 2.1.2 Strategies and Equilibria........................................... 10 2.2 Computing Nash Equilibria 11 2.2.1 Introduction to Linear Programming.................................. 11 2.2.2 Game Solving with LP............................................. 12 2.2.3 Asymmetric Games............................................... 13 2.2.4 Bimatrix Games.................................................