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Game Theory Lecture Notes

Game Theory : Penn State Math 486 LectureNotesVersion Griffin 2010-2012 Licensed under a Creative Commons Attribution-Noncommercial-Share Alike United States LicenseWith Major Contributions By:James FanGeorge Kesidisand Other Contributions By:Arlan StutlerContentsList of FiguresvChapter 1. Preface and an Introduction to Game Theoryxi1. Using These Notesxi2. An Overview of Game TheoryxiChapter 2. Probability Theory and Games Against the House11. Probability12. Random Variables and Expected Values63. Conditional Probability74. Bayes Rule12 Chapter 3. Utility Theory151. Decision Making Under Certainty152. Advanced Decision Making under Uncertainty22 Chapter 4. Game Trees, Extensive Form, Normal Form and Strategic Form251.

the game by folding (and thus receiving a payo or not) or continuing the game by raising. At this point, Player 2 can then decide whether to call or fold, thus potentially receiving a payo .26 2.11 Reduced Red Black Poker: We are told that Player 1 receives a red card. The resulting game tree is substantially simpler. Because the information set on

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