Book contents
- Frontmatter
- Contents
- Preface
- 1 Theory 1: Introduction
- 2 Theory 2: Simultaneous Games
- 3 Example: Selecting a Class
- 4 Example: Doctor Location Games
- 5 Example: Restaurant Location Games
- 6 Using Excel
- 7 Example: Election I
- 8 Theory 3: Sequential Games I: Perfect Information and no Randomness
- 9 Example: Dividing A Few Items I
- 10 Example: Shubik Auction I
- 11 Example: Sequential Doctor and Restaurant Location
- 12 Theory 4: Probability
- 13 France 1654
- 14 Example: DMA Soccer I
- 15 Example: Dividing A Few Items II
- 16 Theory 5: Sequential Games with Randomness
- 17 Example: Sequential Quiz Show I
- 18 Las Vegas 1962
- 19 Example: Mini Blackjack and Card Counting
- 20 Example: Duel
- 21 Santa Monica in the 50s
- 22 Theory 6: Extensive Form of General Games
- 23 Example: Shubik Auction II
- 24 Theory 7: Normal Form and Strategies
- 25 Example: VNM POKER and KUHN POKER
- 26 Example: Waiting for Mr. Perfect
- 27 Theory 8: Mixed Strategies
- 28 Princeton in 1950
- 29 Example: Airport Shuttle
- 30 Example: Election II
- 31 Example: VNM POKER(2, r, m, n)
- 32 Theory 9: Behavioral Strategies
- 33 Example: Multiple-Round Chicken
- 34 Example: DMA Soccer II
- 35 Example: Sequential Quiz Show II
- 36 Example: VNM POKER(4, 4, 3, 5)
- 37 Example: KUHN POKER(3, 4, 2, 3)
- 38 Example: End-of-Semester Poker Tournament
- 39 Stockholm 1994
- Bibliography
- Index
12 - Theory 4: Probability
- Frontmatter
- Contents
- Preface
- 1 Theory 1: Introduction
- 2 Theory 2: Simultaneous Games
- 3 Example: Selecting a Class
- 4 Example: Doctor Location Games
- 5 Example: Restaurant Location Games
- 6 Using Excel
- 7 Example: Election I
- 8 Theory 3: Sequential Games I: Perfect Information and no Randomness
- 9 Example: Dividing A Few Items I
- 10 Example: Shubik Auction I
- 11 Example: Sequential Doctor and Restaurant Location
- 12 Theory 4: Probability
- 13 France 1654
- 14 Example: DMA Soccer I
- 15 Example: Dividing A Few Items II
- 16 Theory 5: Sequential Games with Randomness
- 17 Example: Sequential Quiz Show I
- 18 Las Vegas 1962
- 19 Example: Mini Blackjack and Card Counting
- 20 Example: Duel
- 21 Santa Monica in the 50s
- 22 Theory 6: Extensive Form of General Games
- 23 Example: Shubik Auction II
- 24 Theory 7: Normal Form and Strategies
- 25 Example: VNM POKER and KUHN POKER
- 26 Example: Waiting for Mr. Perfect
- 27 Theory 8: Mixed Strategies
- 28 Princeton in 1950
- 29 Example: Airport Shuttle
- 30 Example: Election II
- 31 Example: VNM POKER(2, r, m, n)
- 32 Theory 9: Behavioral Strategies
- 33 Example: Multiple-Round Chicken
- 34 Example: DMA Soccer II
- 35 Example: Sequential Quiz Show II
- 36 Example: VNM POKER(4, 4, 3, 5)
- 37 Example: KUHN POKER(3, 4, 2, 3)
- 38 Example: End-of-Semester Poker Tournament
- 39 Stockholm 1994
- Bibliography
- Index
Summary
Often games contain random features. In poker and other card games, the first move is made not by the players but by the dealer who deals the cards randomly. Outcomes depend on the players' moves and on random elements. Even some completely deterministic games, like ROCK-SCISSORS-PAPER, are best played using some random device. Accordingly, we need to discuss the theory of probability.
Terminology
Much mathematical reasoning is concerned with trying to predict outcomes. If I create a sphere of radius 20cm, how large will its surface area be? If I combine 20ml of a 20% acid solution and 30ml of a 50% acid solution, what is the strength of the solution I get? What will be the speed of a falling apple 0.1 seconds after it is dropped? If a roulette ball has an initial speed of 3 meter per seconds, a given initial direction, and the roulette wheel is spinning at a certain speed, where will the ball end? If interest rate increases by 5% and productivity by 3%, how will the unemployment rate change? In many situations, models from the sciences, social sciences, or economics are not strong enough to predict these outcomes. Or, the models may be accurate, but the data available is not sufficient, which is the case in the roulette example. In those cases, outcomes seem random or unpredictable.
- Type
- Chapter
- Information
- Game Theory Through Examples , pp. 86 - 98Publisher: Mathematical Association of AmericaPrint publication year: 2014