In this paper, we investigate a two-person zero-sum game with fractional loss function, which we call the two-person zero-sum fractional game. We are interested in a game value and a saddle point of the two-person zero-sum game and observe that they exist under various conditions. But, in many cases, it seems to be difficult to search directly for a game value and a saddle point of the fraction...

We investigate the basic trade-offs, analysis and decision processes involved in information security and intrusion detection, as well as possible application of game theoretic concepts to develop a formal decision and control framework. A generic model of a distributed intrusion detection system (IDS) with a network of sensors is considered, and two schemes based on game theoretic techniques a...

W present a diagrammatic method that allows the determination of all Nash equilibria of 2×M nonzero sum games, extending thus the well known diagrammatic techniques for 2 × M zero sum and 2 × 2 nonzero sum games. We show its appropriateness for teaching purposes by analyzing modified versions of the prisoners’ dilemma, the battle of the sexes, as well as of the zero sum game of matching pennies...

For a controlled stochastic differential equation with a Bolza type performance functional, a variational formula for the functional in a given control process direction is derived, by means of backward stochastic differential equations. As applications, some Pontryagin type maximum principles are established for optimal controls of control problems, for saddle points of open-loop two-person ze...

Economists use the word rational in a narrow way. To an economist, a rational actor is someone who makes decisions that maximize her (or his) preferences subject to constraints imposed by the environment. So, this actor knows her preferences and knows how to go about optimizing. It is a powerful approach, but it probably is only distantly related to what you mean when you think of yourself as r...

Economists use the word rational in a narrow way. To an economist, a rational actor is someone who makes decisions that maximize her (or his) preferences subject to constraints imposed by the environment. So, this actor knows her preferences and knows how to go about optimizing. It is a powerful approach, but it probably is only distantly related to what you mean when you think of yourself as r...