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Applied Game Theory in Business Analytics
Abstract
In this chapter we introduce the concept of game theory and its use as a decision making tool in a competitive situation among players. We define and describe some different types of games and solution methodologies. We present the assumptions regarding these different types of game. We define and represent the different types of games between two players as either total conflict or partial conflict. We present solution techniques to both total conflict and partial conflict games. We present both pure strategy and mixed strategy solutions. We discuss the Nash equilibrium.
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