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Strategy. Game theory is the study of mathematical models of strategic interactions. [1] It has applications in many fields of social science, and is used extensively in economics, logic, systems science and computer science. [2] Initially, game theory addressed two-person zero-sum games, in which a participant's gains or losses are exactly ...
In game theory, folk theorems are a class of theorems describing an abundance of Nash equilibrium payoff profiles in repeated games (Friedman 1971). [1] The original Folk Theorem concerned the payoffs of all the Nash equilibria of an infinitely repeated game. This result was called the Folk Theorem because it was widely known among game ...
Information set (game theory) The information set is the basis for decision making in a game, which includes the actions available to both sides and the benefits of each action. The information set is an important concept in non-perfect games. In game theory, an information set is the set of all possible actions in the game for a given player ...
Perfect information: A game has perfect information if it is a sequential game and every player knows the strategies chosen by the players who preceded them. Constant sum: A game is a constant sum game if the sum of the payoffs to every player are the same for every single set of strategies. In these games, one player gains if and only if ...
Proposed by. John Forbes Nash Jr. Used for. All non-cooperative games. In game theory, the Nash equilibrium is the most commonly-used solution concept for non-cooperative games. A Nash equilibrium is a situation where no player could gain by changing their own strategy (holding all other players' strategies fixed). [1]
Game tree. In the context of combinatorial game theory, which typically studies sequential games with perfect information, a game tree is a graph representing all possible game states within such a game. Such games include well-known ones such as chess, checkers, Go, and tic-tac-toe. This can be used to measure the complexity of a game, as it ...
In game theory, a focal point (or Schelling point) is a solution that people tend to choose by default in the absence of communication in order to avoid coordination failure. [1] The concept was introduced by the American economist Thomas Schelling in his book The Strategy of Conflict (1960). [2] Schelling states that " [p]eople can often ...
In applied game theory, the definition of the strategy sets is an important part of the art of making a game simultaneously solvable and meaningful. The game theorist can use knowledge of the overall problem, that is the friction between two or more players, to limit the strategy spaces, and ease the solution. For instance, strictly speaking in ...