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Strategic Form Games
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Pareto Efficiency
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.
Simultaneous Moves
In strategic form games, players make decisions simultaneously without knowledge of the other players' decisions.
Dominant Strategy
A strategy is dominant if it yields a higher payoff than any other strategy, regardless of what the other players do.
Payoff Matrix
A payoff matrix is a matrix that shows the payoffs for every possible combination of strategies by all the players in a game.
Mixed Strategy
A mixed strategy is a strategy in which a player chooses among the available actions with a certain probability distribution.
Pure Strategy
A pure strategy is a strategy in which a player chooses a specific action with certainty (probability of 1).
Zero-Sum Game
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.
Definition of Strategic Form Game
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.
Nash Equilibrium
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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