27 Apr Game Theory

Game Theory

Game theory is the concept that one’s actions depend on what actions other actors may or may not take and what motivates those actions. Game theory is sometimes referred to as the science of strategy. The theory concerns what actions players should take in order to obtain the best outcomes for themselves based on the actions of others in scenarios involving all of the players, which are sometimes referred to as games. One of the features of all of the games is the concept of interdependence. The outcomes of any single participant in the game depends upon the choices of each of the other participants in the game. Some of the common types of games referenced when discussing game theory include zero sum games, cooperative games, and blends of competition and cooperation. Under game theory, someone participating in a game must anticipate how his or her actions might cause different outcomes to which the participant must then implement strategies. The player must think how others will respond, and the player must put himself or herself in the shoes of an opponent and think in a way that the opponent would think, rather than imposing the player’s own reasoning on the outcome.