News Letter Subscription
World Economy
US Economy
China Economy
Singapore Economy
Canada Economy
more...
Major Companies
ET 500 Companies
Forbes Companies
Fortune 500 Companies
Insurance Companies
S & P 500 Companies
more...
Indian Economy
Business & Economy
Textile Industry
VAT(Value Added Tax)
Poverty in India
FDI
more...
World Industry
Insurance
Finance
Steel Industry
Oil Industry
more...
Mortgage Industry
US Mortgage
UK Mortgage
China Mortgage
Canada Mortgage
US Economy
US Real Estate
US State Economies
US Banks
US Chambers of Commerce
more...
World Investment
Investment Strategy
Real Estate Investment
Property Investment
Online Investment
more...
Economic Relations
US China
Indo-US
Indo-Japan
more...
Stock Exchanges

Economic Indicators

Type of Economic System

World Country

Nobel Prize

World Organizations

Car Finance

Personal Finance

 
Home >> Economics Theory  >> Game Theory >> Strategy in Game Theory

Strategy in Game Theory


Strategy in Game Theory is the most significant aspect of the game, since the strategy determines the player’s fate in the game. It is the complete set of action that one player decides to bank on while he/she is plating the game. This strategy aids the player in handling the situation the player is in. The action one player takes during any stage of the game depends on the strategy. A strategy profile is a set of fixed strategies that each and every player decides to employ. A strategy profile consists of only one strategy for each player respectively.

Difference Between a Move and Strategy

A move and a strategy differ in form though people tend to confuse between these. A Move is a single step a player can take during the game. On the other hand a strategy is a complete set of actions, which a player takes into account while playing the game throughout. In fact a strategy constitutes several moves. It is game plan, which the player avails during the play session.

Kinds of Strategies

There are two types of strategies in the game. They are: § Pure Strategy which is a comprehensive list of the methods that will be adopted by the players. It defines every move, weighs the pros and cons of every option before the player picks up those moves. A player’s strategy space represents the complete set of moves that a player has at his/her disposal. § Mixed Strategy which is a strategy that provides a probability against every pure move. It describes a possible strategy over every pure strategy. Each pure strategy can be assigned a probability. This strategy defines that a player rather than selecting a particular pure strategy will select a strategy randomly from the mix and match provided by the mixed strategy. The probabilities of 1 and zero are normally used within the strategy.

Most Widely Used Strategies

Tit For Tat is one of the most widely used strategies. It is highly effective and competes with numerous algorithms for the highest payoffs. The most popular tactic is the Doubling strategy. This tactic is closely applied by the casino games to double one’s profit. Another famous tactic happens to be Hedging. This is a strategy applied for fiscal investments.