Grey Game Models

Abstract

This chapter focuses on a series of specific and complicated problems created by lossening the constraint of complete knowledge, assumed as one of the most fundamental conditions in the conventional game theory, when one investigates problems of grey games. It makes use of the structural system of the conventional game theory as reference and the theoretical need to resolve practical problems as motivation. The game theory was initiated in 1944 by John von Neumann and Oskar Morgenstern when they jointly published their book, entitled “Game Theory and Economic Behavior.” By the end of the 1950s, cooperative game theory had developed to its peak; noncooperative game theory also appeared during the decade. Since after the 1970s, game theory had gradually evolved into a relatively complete theoretical system. Since after the 1980s, game theory has become a component of the mainstream economics. Especially, in the areas of oligopoly theory and information economics, the theory had brought forward magnificent achievements. To a certain extent, it can be said that it has become part of the fundamental materials of microeconomics.