next up previous contents
Next: Two-Person Games Up: Quantitative Methods for Previous: Decision Trees

Game Theory

In previous chapters, we have considered situations where a single decision maker chooses an optimal decision without reference to its effect on other decision makers. In many business situations, however, the outcome for a given firm depends not just on what strategy it chooses, but also on what strategies its competitors choose. Game theory is an attempt to formalize such competitive situations. We present some of the main ideas in the context of Two-Person games and then discuss briefly n-Person Games.

Michael A. Trick
Mon Aug 24 16:30:59 EDT 1998