Game Theory: An Introduction To The Game Theory

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Game Theory

''Game theory'' is a study of conflict and cooperation between rational and intelligent decision-makers. It is mainly used in economics, but recently has been used in political science and psychology, and computer science and biology. Game theory seeks to say that any social problem can be formulated into a game, and then played out to find the best possible solution to the problem. I recently took a Coursera class entitled ''Welcome to Game Theory'' by Michihiro Kandori from the University of Tokyo. The course was an early look into game theory, going over the history and basic principles of it, offering some simple situations game theory might help to solve, such as a traffic jam, or an actual game like poker. Moden game theory was developed by Jogn von Neumann, via a paper he published in 1928, utilizing a fixed-point theorem on continuos mappings into
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It was split up into four weeks, with the first week discussing the history of game theory, as well as laying out problems that you can use game theory to solve. Week one also introduced a simple card game, which is played by two players and is meant to demenstrate the concept of ''nash equlibrium'', named after the famous mathematician John Nash Jr. Nash equlibrium is a concept of a non-cooperative game involving two or more players, in which each player is assumed to know the equilibrium strategies of the other players, and no player has anything to gain by changing only his own strategy. If each player has chosen a strategy and no player can benefit by changing strategies while the other players keep theirs unchanged, then the current set of strategy choices and the corresponding payoffs constitutes a Nash equilibrium. This is one of the founding principles of game theory, and is ulitilized in finding the best possible solution to social problems you may

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