Game Theory: Superadditivity & Imputation Explained

In summary: This is the equilibrium. The problem is that it is not always the equilibrium. In particular, if the other prisoner knows that the first prisoner is thinking about confessing, he will not confess. This is called the "dominant strategy" problem: there is a strategy that always dominates every other strategy in a game. The solution to the P.D. is to find a strategy that does not always dominate the other strategy.
  • #1
bigjoe5263
19
0
Hi,

In a n-person game theory.. I have encountered these terms, superadditivity and imputation, however i do not understand much their definition. Anyone have a simple explanation to this terms?

Somebody here knows where can I find a dictionary of mathematical expressions/equations in game theory?

thanks in advance.
 
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  • #2
Can you explain the context? Does it involve cooperative games (e.g. Shapley)?

http://www.britannica.com/ebc/article-22625

For example, a cooperative game may be called superadditive if the value (payoff) of a coalition that consists of two players is greater than the sum of the individual values (payoffs) for each of the two players: V(a + b) > V(a) + V(b). See also http://en.wikipedia.org/wiki/Superadditive

In the same context, an imputation is a payoff vector associated with a possible outcome. In a cooperative game, an outcome is a coalition; more than one imputations may correspond to a coalition. The Britannica article has some examples.

A good starting point for game theory is http://en.wikipedia.org/wiki/Game_theory
 
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  • #3
yes it involves cooperative games, the shapely value and the core of an n-person game theory...

Just one question on the prisoners dilemma non constant sum game and non-cooperative...the equilibrium is both of them confess but it confuses me because i think when one of them change the strategy the other one will benefit...??
 
  • #4
That's why you should be careful whether you are operating under "cooperative" assumptions or "non-cooperative" (competitive) assumptions.

Prisoner's Dilemma (P.D.) is a classic example in non-coop. theory. Each prisoner is assumed to care about his/her utility (payoff) only; they are not allowed to interact; there are no side payments; and there are no "future payoffs." Each prisoner will first ask: "if the other prisoner confesses, am I better off confessing or not confessing?" He will find out that he is better off confessing. Then the same prisoner will ask: "if the other one does not confess, am I better off confessing or not confessing?" Again he will find out that he is better off confessing. He will conclude that he is better off confessing regardless of what the other one does.
 
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What is game theory?

Game theory is a branch of mathematics that studies how rational individuals make decisions in strategic situations, where the outcome of their decision depends not only on their own actions but also on the actions of others.

What is superadditivity in game theory?

Superadditivity refers to a situation in a cooperative game where the value of a coalition of players is greater than the sum of the values of the individual players. In other words, the whole is greater than the sum of its parts.

How does superadditivity affect the outcome of a game?

In cooperative games, superadditivity can lead to the formation of larger coalitions, as players have an incentive to work together in order to achieve a greater collective payoff. This can also lead to more stable agreements and outcomes.

What is imputation in game theory?

Imputation is a concept in cooperative game theory that refers to the division of the total payoff among the players in a coalition. It is a way of allocating the value of the grand coalition (all players) among its members.

How is imputation determined in a cooperative game?

There are various methods for determining imputation, including the Shapley value, the nucleolus, and the core. These methods take into account different factors, such as the contribution of each player and the stability of the proposed allocation.

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