Game Theory

Game theory examines the decisions that individual players make in order to win a game against one or more competitors. The players are abstract, intelligent, individual agents who act in pursuit of their own limited goals in an abstract setting. Von Neumann and Morgenstern (1944) based their original model on the analogy of two or more people playing a parlor game, such as chess, poker, or bridge. Game theory examines games of strategy but not games of chance, such as rolling dice. A strategic game involves two or more participants making choices of actions in which each may gain or lose depending on the actions taken by the other player(s). There is some uncertainty, as none of the players knows exactly what the others will do. ...

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