Game Theory
Game theory is the study of the ways in which interacting choices of economic agents produce outcomes with respect to the preferences (or utilities) of those agents, where the outcomes in question might have been intended by none of the agents.
This definition, as with any game theory, makes two assumptions:
Interacting Choices—The decision of one player affects the second player.
Economic Agents—Players, people involved in the situation.
Utility—Where the player will receive the most benefit.
In short, game theory allows for choices between two people to be analyzed and predicted in a scientific manner.
Source: Source: Stanford Encyclopedia of Philosophy (2014). “Game Theory” Accessed online 3 August 2018 https://plato.stanford.edu/entries/game-theory/
Brad Burenheide 17 March 2020
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This definition, as with any game theory, makes two assumptions:
- The player will play the game rationally.
- The player’s decisions will be to maximize their payoffs in the game.
Interacting Choices—The decision of one player affects the second player.
Economic Agents—Players, people involved in the situation.
Utility—Where the player will receive the most benefit.
In short, game theory allows for choices between two people to be analyzed and predicted in a scientific manner.
Source: Source: Stanford Encyclopedia of Philosophy (2014). “Game Theory” Accessed online 3 August 2018 https://plato.stanford.edu/entries/game-theory/
Brad Burenheide 17 March 2020
Return to Glossary
Return to Home Page