Game Theory : An Integral Part Of Human Existence

1570 Words7 Pages
Logic and strategy are an integral part of human existence. Individuals make strategic decisions every day; whether they are deciding who to spend their time with, what to offer in a trade, or how to accomplish something that they want. Game theory is the study of all strategic decision making. However, my paper is on the topic of algorithmic game theory, which is the application of game theory to algorithm design. “Algorithmic game theory is the area in the intersection of algorithm design and game theory whose goal is to design algorithms in logical and strategic environments.” (Roberto and Goodrich, 2002) In order to better discuss the topic of algorithmic game theory, I am first going to discuss the two main elements; game theory and algorithm design. First let us discuss the basics of game theory itself. Game theory is defined as “the study of mathematical models of conflict and cooperation between intelligent, rational decision-makers”. (Myerson, 1991) Also called ‘strategic decision making’ game theory is essentially studying the decisions that people will make in interactive situations with given inputs and outputs. Game theory is based on the principles that players will act logically and that players are looking out for their own interests; basically it assumes that players are trying to maximize their personal gain by using strategy. Game theory helps us better understand human decision making by focusing on the rational aspects of decision science. A ‘game’ is
Open Document