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Strategic Form Games

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Pareto Efficiency

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A set of strategies is Pareto efficient if there is no other set of strategies that makes at least one player better off without making any other player worse off.

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Simultaneous Moves

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In strategic form games, players make decisions simultaneously without knowledge of the other players' decisions.

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Dominant Strategy

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A strategy is dominant if it yields a higher payoff than any other strategy, regardless of what the other players do.

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Payoff Matrix

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A payoff matrix is a matrix that shows the payoffs for every possible combination of strategies by all the players in a game.

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Mixed Strategy

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A mixed strategy is a strategy in which a player chooses among the available actions with a certain probability distribution.

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Pure Strategy

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A pure strategy is a strategy in which a player chooses a specific action with certainty (probability of 1).

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Zero-Sum Game

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A zero-sum game is a strategic form game where one player's gain equals the other player's loss, making the sum of their payoffs zero.

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Definition of Strategic Form Game

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A strategic form game is defined by a finite set of players, each with a finite set of actions, and their payoff functions for each possible combination of actions.

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Nash Equilibrium

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A set of strategies is in Nash Equilibrium if no player can benefit by unilaterally changing their strategy while the strategies of the others remain unchanged.

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