Game Theory and Linear Algebra
Name
Date
University
Game Theory and Linear Algebra
The decision making process of a person has become the subject of statistical and logical analysis by scientists as they try to determine what drives decision or why individuals make decisions that may not be in their best interests. One can view the example of regular decisions that people make, such as asking for marriage, having children or probably getting a divorce. However, other decisions are not so regular. For example, one doesn’t decide to ask their date for a nightcap so often, or even ask what kind of gift they should get their partner. Every time a person is faced with a decision, there are enormous amounts of data and variables to be considered. Nonetheless, decisions cannot entirely be calculated mathematically due to the depth of information that remains unavailable to the mathematician (Myerson, 1991). For example, one cannot compute the joy of holding a baby as opposed to the costs of raising such a child. The zero-sum game provides equal playing ground for the examination of the game theory since there sum of all values should be equal to zero. This paper considers the application of game theory with zero-sum games as a form of linear algebra.
A Game
Consider a game of ‘Morra’ between two players, Isaac and Rose. The game has …show more content…
For example, a player in the stock market being analyzed using this method will be assumed to be using one of two methods of trading. Therefore, the player is assumed to be using bounded rationality in their decision making. On the other hand, we assume that the number of jellies that each players has doesn’t change their strategy to their advantage. In the case of the trader, it is assumed that his strategy remains constant whether he loses money or gains it. Here, we also consider that the player doesn’t take higher risks to get higher
Name
Date
University
Game Theory and Linear Algebra
The decision making process of a person has become the subject of statistical and logical analysis by scientists as they try to determine what drives decision or why individuals make decisions that may not be in their best interests. One can view the example of regular decisions that people make, such as asking for marriage, having children or probably getting a divorce. However, other decisions are not so regular. For example, one doesn’t decide to ask their date for a nightcap so often, or even ask what kind of gift they should get their partner. Every time a person is faced with a decision, there are enormous amounts of data and variables to be considered. Nonetheless, decisions cannot entirely be calculated mathematically due to the depth of information that remains unavailable to the mathematician (Myerson, 1991). For example, one cannot compute the joy of holding a baby as opposed to the costs of raising such a child. The zero-sum game provides equal playing ground for the examination of the game theory since there sum of all values should be equal to zero. This paper considers the application of game theory with zero-sum games as a form of linear algebra.
A Game
Consider a game of ‘Morra’ between two players, Isaac and Rose. The game has …show more content…
For example, a player in the stock market being analyzed using this method will be assumed to be using one of two methods of trading. Therefore, the player is assumed to be using bounded rationality in their decision making. On the other hand, we assume that the number of jellies that each players has doesn’t change their strategy to their advantage. In the case of the trader, it is assumed that his strategy remains constant whether he loses money or gains it. Here, we also consider that the player doesn’t take higher risks to get higher