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Game theory is the study of the ways in which strategic interactions between rational players produce outcomes with respect to the preferences of those players
GAME THEORY
So, basically, game theory is the study of how people's minds work in certain situations. Game theory can help you make decisions based on other people's decisions.
Game Theory Terminology
GAME: A situation where at least one agent can only maximize his utility by anticipating the responses of other agents to his actions RATIONAL: A player is rational when it assesses outcomes, calculates paths to those outcomes, & chooses paths that leads to outcomes of higher utility AGENT: An entity that, consciously or otherwise, makes a decision (A player is an agent in a game.) UTILITY: The desirability of an outcome UTILITY FUNCTION: A list which orders outcomes by utility "The Prisoners' Dilemma" is a classic, simplified example of applied game theory.
By Cecille Yang
