Introduction to game-theory calculations

Nicola Orsini, Debora Rizzuto and Nicola Nante
Additional contact information
Nicola Nante: University of Siena

Stata Journal, 2005, vol. 5, issue 3, 355-370

Abstract: Game theory can be defined as the study of mathematical mod- els of conflict and cooperation between intelligent and rational decision makers (Myerson 1991). Game-theory concepts apply in economy, sociology, biology, and health care, and whenever the actions of several agents (individuals, groups, or any combination of these) are interdependent. We present a new command gamet to represent the extensive form (game tree) and the strategic form (payoff matrix) of a noncooperative game and to identify the solution of a nonzero and zero-sum game through dominant and dominated strategies, iterated elimination of domi- nated strategies, and Nash equilibrium in pure and fully mixed strategies. Further, gamet can identify the solution of a zero-sum game through maximin criterion and the solution of an extensive form game through backward induction. Copyright 2005 by StataCorp LP.

Keywords: Game theory; Nash equilibrium; payoff matrix; zero-sum game; game tree (search for similar items in EconPapers)
Date: 2005
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.stata-journal.com/article.html?article=st0088
http://www.stata-journal.com/software/sj5-3/st0088/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tsj:stataj:v:5:y:2005:i:3:p:355-370

Ordering information: This journal article can be ordered from
http://www.stata-journal.com/subscription.html

Access Statistics for this article

Stata Journal is currently edited by Nicholas J. Cox and Stephen P. Jenkins

More articles in Stata Journal from StataCorp LLC
Bibliographic data for series maintained by Christopher F. Baum () and Lisa Gilmore ().