Decision rules

by David Carfi

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1Decision rules in Game Theory

The concept of decision rule was used by J. P. Aubin in [1], [2], then developed by D. Carfì in [3] and [4] and other papers and monographs.

1.1Strategic base of a two player game

Definition (strategy base and bistrategy space). Let be a pair of non-empty sets, we call it strategy base of a two-player game. The first set is said the first player's strategy set; the second set is said the second player's strategy set. Any element of is said a first player's strategy and any element in is said a second player's strategy. Every pair of strategies is said a bistrategy of the strategy base and the cartesian product is said the bistrategy space of the base .


Interpretation and terminology. We call the two players of a game Emil and Frances: Emil, simply, stands for "first player"; Frances stands for "second player". Emil's aim is to choose a strategy in the set , Frances' aim is to choose a strategy in , in order to form a bistrategy such that the strategy is an Emil's good response to the Frances' strategy and vice versa.

1.2Definition of decision rule

Definition (decision rule). Let be a strategy base of a two-player game. An Emil's decision rule on the base is a correspondence from to , say Symmetrically, a Frances' decision rule on the base is a correspondence from to , say .


The best reply reaction behavior in normal-form games, which appears in the definition of Nash equilibrium, can be viewed as a particular kind of decision rule.


References:
  • [1]^ J. P. Aubin, Mathematical Methods of Game and Economic Theory, North-Holland.
  • [2]^ J. P. Aubin, Optima and Equilibria, Springer Verlag
  • [3]^ D. Carfì, Decision form games, Edizioni Il Gabbiano 2010
  • [4]^ D. Carfì, A. Ricciardello, Non-reactive strategies in decision-form games, Atti dell'Accademia Peloritana dei Pericolanti, issue 1 Volume LXXXVII (2009)