Solution concepts of non- cooperative games:

While solving a game you should keep in mind that the players are rational. They think about their payoffs only. In their celebrated book "The Theory of Games and Economic Behaviour" John von Neumann and Oscar Morgenstern defined a game as any interaction between agents that is governed by a set of rules specifying the possible moves for each participant and a set of outcomes for each possible combination of moves. Therefore, knowing how to find a solutiori of a game is important from many respects, such as social, political and economical aspects.

同时游戏不同于顺序移动games in that players make decisions without knowing their rivals' action. Such games are illustrated with game tables where the cells show the payoff to each player. Two person zero sum game, in which the payoffs sum to the same value in each possible outcome may be illustrated in shorthand with only one players payoff in each cell.

Nash equilibrium is the solution concept used to solve simultaneous move games. Nash equilibrium may entail pure or mixed strategy and can be found using a gamut of methods. They are, iterated elimination of strictly dominated strategies, minimax, cell-by-cell inspection. Sequential move games require players to consider the future consequences of their current move before choosing their current action. Analysis of sequential move games generally requires the creation of a game tree. Backward induction is a method by which we can find out the equilibrium of such games.

Non-credible threat often generates equilibria, which are not realistic. Nash equilibrium fails to bar them out; the concept of sub-game perfect Nash equilibrium is useful in this regard.