At the same time, Deepa would be sentenced for 15years in prison. If Smita confesses then she would be released. Here there is chance to apply prisoner’s dilemma. Both Smita and Deepa deny of their involvement in crime then both are sentenced to two year in prison. But they are given a choice to confess and deny. If Smita and Deepa confess then each is sentenced to ten years in prison. If both of them have done the crime and caught by police then they have number of strategies. In Prisoners Dilemma, two Prisoners interact only once. If they communicate and commit to co-ordinate then the outcome will be different. We assumed that there is no communication between the two prisoners. There are many person’s interacting with each other.Ģ. Prisoner’s dilemma is based on certain assumptions:ġ. The work is sanctioned under this program is to provide the benefits to rural poor people. The government welfare programs include NREGA in India. The players work out others actions as the best strategies. In the welfare game, there are no dominant strategies. The dominant strategy does not exist in the welfare game. Such equilibrium strategies are the best response to other player. Therefore the dominant strategies are the equilibrium strategies. The individual choose the best strategies which are dominant strategies. At the same time s*i is the best strategy chosen by i th player that yields him the greatest payoff.Ībove notation explains that the best strategy (s*i) has highest gain. The Player i’s best response or best reply to the strategies S-i, chosen by, the other players. For the purpose, we use the notation S-Smita is the combination of strategies of every player’s except player Smita. It is a dominant strategy in terms of the other player’s strategy. Dominant strategy is an important to study the player’s strategy. The prisoner’s dilemma gives the dominant strategy. Various aspects of the multi-person Prisoners’ Dilemma have been investigated in the literature. It recapitulates characteristics fundamental to almost every social intercourse. The study may lead to a better understanding of the factors stimulating or inhibiting cooperative behavior within social systems. Realistic investigations of collective behavior, however, require a multi-person model of the game that serves as a mathematical formulation of what is wrong with human society. Game Theory assumes that the both players act rationally. The Prisoners’ Dilemma is usually defined between two players. Term Paper on the Prisoner’s Dilemma: A Dominant Strategy : If there is a set of strategies with the property that no player can make profit by changing his or her strategy while the other players keep their strategies unchanged, then that set of strategies and the corresponding payoffs constitute the Nash equilibrium.Ģ. Applications of game theory always attempt to find equilibriums. In any game utility represents the motivation of players. A strategic game consists of a set of players, which may be a group of nodes or an individual node.Ī set of actions for each player to make a decision and preferences over the set of action profiles for each player.
In game theory, human behavior is studied in strategic situation and a mathematic mode is captured. Game theory is a theory of decision making under conditions of uncertainty and interdependence. It can be explained differently as follows. Equal benefit to both parties is Nash equilibrium. The agents or firm get benefit to move ahead, collude or disagree with opposite party in the game. At every point of game, individual expects some economic gains out of different actions. Every individual is an economic agent in nature.
Game theory are of individuals, groups, firms. The decision tree is derived to understand the gains from any game. In mathematics, game theory is used to explain the relationship between the variables. The use of game theory is increasing day after day because of complexities in economic gains. Game theory is widely used in different subjects. Term Paper on the Introduction to Game Theory :
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