Outcome depends on only one player is called decision theory. Outcome depends on two or more players is called game theory.
Pure Strategy: A course of action avialable to player. The strategies chosen by each player lead to outcomes with payoffs for each player. Dominate Strategy: If every outcome in is same or better (at least one outcome is better) than the corresponding outcome in . Dominance Principle: A rational player will never choose a donimated strategy (a clearly inferior strategy) in a total conflict game. Total conflict game: One player’s gain is exactly the other player’s lost. Nash Equilibrium: Neither player can benefit by departing unilaterally from its strategy associated with that outcome. Pure Strategy Nash Equilibrium: Mixed Strategy: When a player does not always choose the same strategy, but depends on probability. Partial Conflict: Each possible outcome the payoffs to each player do not sum to the same constant. Prisoner’s Dilemma: A two-person partial conflict game in which each player has two strategies, defect or cooperate; defect dominates cooperate for both players even though the mutual defection outcome, which is the unique Nash equilibrium in the game, is worse for both players than the mutual cooperation outcome.