Game Theory

Synonyms

Probability theory; Theory of games; The science of strategy

Definition

The science of strategy studied using mathematical, interdependent, logic choice games between two or more players.

Introduction

In essence, game theory is the science of strategy. Research in this field aims to determine the action or set of actions that players should logically take to secure the best outcomes for themselves. The set of conditions and rules dictating players’ choice of actions, and consequences of those actions are referred to as games. There are numerous specific games, but they all share the common qualities of interdependence, in that the outcome for each player depends on the chosen actions of other players, and conflict, in that there is the potential for different gains or losses between players. Thus, decisions in games are different from decisions made in a “neutral” context without other players (such as with inanimate objects), and as in a neutral context, there is no...