This article describes some simple games, discusses different theories, and outlines principles underlying game theory. Additional concepts and methods that can be used to analyze and solve decision problems are treated in the article optimization.
Game theory does not attempt to state what a player’s goal should be; instead, it shows how a player can best achieve his goal, whatever that goal is. Von Neumann and Morgenstern understood this distinction; to accommodate all players, whatever their goals, they constructed a theory of utility.
game theory, Branch of applied mathematics devised to analyze certain situations in which there is an interplay between parties that may have similar, opposed, or mixed interests.
The basic prisoners’ dilemma is an imaginary situation in which two prisoners are accused of a crime. If one confesses and the other does not, the prisoner who confesses will be released immediately and the prisoner who does not will be jailed for 20 years.
Chess theory consists of opening knowledge, tactics (or combinations), positional analysis (particularly pawn structures), strategy (the making of long-range plans and goals), and endgame technique (including basic mates against the lone king).
As its name suggests, game theory represents a formal study of social institutions with set rules that relate agents’ actions to outcomes. Such institutions may be thought of as resembling the parlour games of bridge, poker, and tic-tac-toe.
All in all, game theory holds out great promise not only for advancing the understanding of strategic interaction in very different settings but also for offering prescriptions for the design of better auction, bargaining, voting, and information systems that involve strategic choice.
Game theory - Strategies, Payoffs, Equilibrium: Much of the early work in game theory was on two-person constant-sum games because they are the easiest to treat mathematically.
Modern number theory is a broad subject that is classified into subheadings such as elementary number theory, algebraic number theory, analytic number theory, geometric number theory, and probabilistic number theory.
Game theory uses mathematics to model and analyze situations in which decisions are interdependent. While it can be used to model recreational games such as Monopoly or poker, it is often used to analyze topics of real-world interest, including economics and military strategy.
