Types of Game Theory:
There are several types of game theory. These are-
(1) Zero-sum two person games.
(2) Non-zero-sum two person games.
(3) Zero-sum n-person games.
(4) Non-zero-sum n-person games.
In the first type, there are only two players, with the result the gains of one are always equal to the loss of the other, the sum of outcomes for the two players being zero. This is thus, a game of pure opposition and of a strictly competitive nature. In it, there is no need for communication, discussion or bargaining and no joint gain or savings. The players or participants are opposed to each other.
In the second and third types, there are two or more persons in the game, the participants may share the division of the gains in some way, and the gain of the one need not be equal to the loss of the other. Such a game will require that the pay-off is divisible and some principle of distribution is applied.
In the fourth type of the game theory, there are three or more players, writes S.P. Verma. The game situation develops a large number of new features, and it becomes possible for two or more players to cooperate against the others by pooling their resources and making collective decisions during the play. They may act on the basis of some coalition adjustments, which may reduce the number of adversaries. Sometimes, a member of a coalition may even work out a deal with other participants of the game, and thus, make his chance of winning absolutely definite. A coalition, then, becomes, writes Martin Shubik, ‘a game-within-a-game, in which players exercises rules (apply resources) in order to enforce agreements and keep a less advantaged member from breaking away in response to higher bids from adversary players’. Thus, coalition within the coalition and coalitions of groups and individuals might further combine with other coalitions. This type of game, we find in forming majority governments in a democratic system.