Game Theory

Abstract

Game theory is concerned with games of strategy, which may or may not be games of chance. In Section 5.1 we introduce matrix games, with emphasis on the games of le her and chemin de fer, and in Section 5.2 we prove the fundamental theorem concerning such games, the minimax theorem. Few house-banked casino games fit into this framework because typically the dealer lacks the authority to make strategy decisions. Poker, however, does have game-theoretic aspects. Finally, in Section 5.3 we introduce the basic ideas of utility theory. It should be emphasized that this chapter is really only a very brief introduction to what has become a vast subject.