## Games Theory

Game theory is to determine the rules of rational behavior in game .A game is finite when each player has a finite number of moves and finite number of choices at each move.It provides a systematic quantitative method for analyzing competitive situations in which the competitors make use of logical process and techniques in order to determine an optimal strategy for winning .It is depending on such factors as the number of players ,sum of gains and losses and number of strategy employed in the game .For example,if the number of players are two,we refer to the game as two person game .

## The zero -sum property means that payoff to one player and payoff to other players together sum to zero.This means that one player's gain is another's loss and sum of net gain is zero.

1. The players act rationally and intelligently. 2. Each player has available to him to a finite set of possible courses of action.## Some rules of the game are

3. The players attempt to maximize gain and minimize losses. 4. All the relevant information is known to each player. 5. The players make individual decisions without direct communication.

6. The players simultaneously select their respective course of action.

7. The payoff is fixed and known in advance.