Strategy Game

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    Chess is one of the most well-known and frequently

    played strategy games.

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    Strategy game

    A strategy game or strategic game is a game,

    not necessarily played for fun, in which theplayers' autonomous decision-making skills

    have a high significance in determining the

    outcome. Almost all strategy games require

    internal decision tree style thinking, andtypically very high situational awareness.

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    Basic Concepts

    The term "strategy" comes ultimately from

    Greek, !#$%&$ or strategia( meaninggeneralship. )t differs from "tactics" in that it

    refers to the general scheme of things,

    whereas "tactics" refers to organi*ation and

    e+ecution.

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    Basic Concepts

    All games have three asic elements

    /layers 0trategies

    /ayoffs

    /layers can make inding agreements in

    cooperativegames, ut can not innoncooperativegames, which are studied in

    this chapter.

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    Payers

    A player is a decision maker and can e

    anything from individuals to entire nations. /layers have the aility to choose among a

    set of possile actions.

    Games are often characteri*ed y the fi+ednumer of players.

    Generally, the specific identity of a play is not

    important to the game.

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    Strategies

    A strategy is a course of action availale to a

    player. 0trategies may e simple or comple+.

    )n noncooperative games each player is

    uncertain aout what the other will do since

    players can not reach agreements among

    themselves.

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    Payo##s

    /ayoffs are the final returns to the players at

    the conclusion of the game. /ayoffs are usually measure in utility although

    sometimes measure monetarily.

    )n general, players are ale to rank the payoffs

    from most preferred to least preferred.

    /layers seek the highest payoff availale.

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    &'(ii)ri(m Concepts

    )n the theory of markets an equilirium

    occurred when all parties to the market had noincentive to change his or her ehavior.

    1hen strategies are chosen, an equilirium

    would also provide no incentives for the

    players to alter their ehavior further. The most frequently used equilirium concept

    is a Nash e'(ii)ri(m*

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    Nash &'(ii)ri(m

    A Nash e'(ii)ri(mis a pair of strategies

    a2,2( in a two-player game such that a2 is anoptimal strategy for A against 2 and 2 is an

    optimal strategy for 3 against A2. /layers can not enefit from knowing the equilirium

    strategy of their opponents.4ot every game has a 4ash equilirium, and

    some games may have several.

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    +n ,(strative +dvertising Game

    Two firms A and 3( must decide how much to

    spend on advertising 5ach firm may adopt either a higher 6( udget

    or a low 7( udget.

    The game is shown in e+tensive tree( form in

    8igure 9:.9

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    +n ,(strative +dvertising Game

    A makes the first move y choosing either 6 or

    7 at the first decision ;node. for firm A and ? for firm 3.

    The game in normal taular( form is shownwhere A=s strategies are the rows and 3=s

    strategies are the columns.

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