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Introduction to Game Theory

Types of Games

In game theory, there are several types of games that are classified based on their characteristics. The main types of games are:

1. Zero-sum games

These are games where one player’s gain is exactly balanced by another player’s loss. Examples include poker and chess.

2. Non-zero-sum games

These are games where the total gains or losses of all players do not always sum up to zero. Examples include the prisoner’s dilemma and the tragedy of the commons.

3. Simultaneous games

These are games where each player makes their decision without knowledge of the other player’s decision. Examples include rock-paper-scissors and the battle of the sexes.

4. Sequential games

These are games where players make decisions in a specific order, and each player’s decision is informed by the earlier decisions of other players. Examples include tic-tac-toe and chess.

5. Cooperative games

These are games where players can form coalitions and cooperate with each other to achieve a common goal. Examples include labor unions and political parties.

Each type of game is analyzed using different techniques and strategies. Understanding the type of game being played is crucial for players to make informed decisions and achieve their desired outcome.

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