Following are the **key terms** related to Game theory.

#### Player

Each participant (interested party) is called a player.

#### Strategy

The strategy of a player is the predetermined rule by which a player
decides his course of action from the list of courses of action during
the game. A strategy may be of two types:

**Pure strategy.** It is a decision, in advance of all plays,
always to choose a particular course of action. In other words, if
the best strategy for each player is to play one particular strategy
throughout the game, it is called pure strategy.
**Mixed strategy**. It is a decision, in advance of all plays,
to choose a course of action for each play in accordance with some
particular probability distribution. In other words, if the optimal
plan for each player is to employ different strategies at different
times, we call it mixed strategy.

"STRATEGY is; A style of thinking, a conscious and deliberate process, an intensive implementation system, the science of insuring FUTURE SUCCESS." -Pete Johnson

#### Optimal
strategy

The course of action which maximizes the profit of a player or minimizes
his loss is called an optimal strategy.

#### Saddle
point

A saddle point is an element of the matrix that is both the smallest
element in its row and the largest element in its column. Furthermore,
saddle point is also regarded as an equilibrium point in the theory
of games.

#### Pay-off

The outcome of playing the game is called pay-off.

#### Pay-off
Matrix

It is a table showing the outcomes or payoffs of different strategies
of the game.

#### Value
of the Game

It refers to the expected outcome per play, when players follow their
optimal strategy. It is generally denoted by V.

In the subsequent sections of this chapter, we provide several trivial
illustrations. It should be noted that we make no pretense about the
realism of these illustrations.