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Title: ???????PPT??.pptx

1
Game theory -Another approach to
decision-making
By Liu Jjin and Zhang Yixiao

2
Definition
Game theory is the science of strategy , studying
strategic decision making. It attempts to
determine mathematically and logically the
actions that "players" should take to secure the
best outcomes for themselves in a wide array of
"games.
???? is a typical example.
3
Roughly classification
• zero-sum games
• A participant's gain of utility is exactly
balanced by the losses of the utility of other
participants. If the total gains of the
participants are added up, and the total losses
are subtracted, they will sum to zero.
• positive sum games
• mutual gain
• negative sum games
• mutual harm

4
A famous story prisoners dilemma
• A particular game between two captured
prisoners that illustrates why cooperation is
difficult to maintain even when it is mutually
beneficial.

5
The story of prisoners dilemma
Two criminals are captured by the police. Lets
call them Bonnie and Clyde.
Enough evidence The minor crime of carrying
an unregistered gun. Each would spend a year in
jail.
Suspect The major crime of a bank robbery.
6
Benefit evaluation
Bonnies decision Bonnies decision
Confess Remain silent
Clydes Decision Confess
Clydes Decision Remain silent
In this game between two criminals suspected of
committing a crime, the sentence that each
receives depends both on his or her decision
whether to confess or remain silent and on the
7
What is the result
• In this case, confessing is a Dominant
strategy
• for both Bonnie and Clyde.
• So in the end, both Bonnie and Clyde confess,
and both spend 8 years in jail.

8
What can we learn from PD
Cooperation can be difficult to maintain even
when it would make both players in the game
better off.
• To win a game or to successfully solve these
questions, not only should you focus on your own
standpoint, but also you should realize what your
opponent think.

9
Where to apply
• Economics
• Alvin Roth Transformed Kidney Donation System

2,000 Have Received Transplants Thanks to Nobel
Economist
10
Where to apply
• Political science
• Game Theory Expert Analyzes Fiscal Cliff.

11
Where to apply
• Biological evolution
• Examples on textbook

12
Where to apply
• Daily life
• Marriage and the
• Art of Game Theory (VIDEO)
• They both involve people who are trying to
further their own gains but are limited by the
presence of another person.
• They both offer the possibility of a
cooperative strategy , and a non-cooperative
strategy , where its every man for himself.
• In both, the non-cooperative option is often the
most tempting, but could result in death, whereas
the cooperative option is annoying, but rarely
fatal.

13
Where to apply
• Daily life
• The system help students be matched with the
right school and related applications

14
Cooperation and conflict
Competiton
Bargain
Game
15
Thank you !