Much of game theory is concerned with finite, discrete games, that have a finite number of players, moves, events, outcomes, etc. Many concepts can be extended, however. Continuous games allow players to choose a strategy from a continuous strategy set. For instance, Cournot competition is typically modeled with players' strategies being any non-negative quantities, including fractional quantities.
Differential games such as the continuous pursuit and evasion game are continuous games.
Individual decision problems are sometimes considered "one-player games". While these situations are not game theoretical, they are modeled using many of the same tools within the discipline of decision theory. It is only with two or more players that a problem becomes game theoretical. A randomly acting player who makes "chance moves", also known as "moves by nature", is often added (Osborne & Rubinstein 1994). This player is not typically considered a third player in what is otherwise a two-player game, but merely serves to provide a roll of the dice where required by the game. Games with an arbitrary, but finite number of players are often called n-person games (Luce & Raiffa 1957).
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Saturday, May 22, 2010
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