7. Game Theory

Mathematical game theory is the study of the behavior of decision makers who are conscious that their actions affect one another and who may have imperfect knowledge of both one another and the future. Game theory originated with the mathematical study of such traditional games as bridge and chess, in which each player makes moves in response to, and in active consideration of, the moves of the other players. The concepts that arise in the study of such parlor games are widely applicable and are particularly relevant when a scarce resource has to be shared among many entities, each of which tries to maximize its own share: a situation that frequently occurs in computer networks.

The difference between a game and classical mathematical ...

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