GAME THEORY

When Math Is The Best Game

What is this theory?

  • Game theory is a part of applied math that involves the study of rational decision making.
  • It organizes the possible results of real life and goes through all the possible results to find the optimal one.

Why Game?

This theory organizes:


  • The competing parties as players
  • The possible actions as moves
  • The possible results as payoffs


How?

Well, mathematicians (or game theorists) use matrices that show the players, the strategies and the all the possible payoffs.

Nash Equilibrium

A group of players are in Nash equilibrium if each one is making the best decision that he or she can, taking into account the decisions of the others.

This a clip from "A Beautiful Mind" which shows Dr. John Nash starting his quest in understanding game theory.

Clip from a "Beautiful Mind"

Game Theory Has Various Uses In Our Everyday Lives

Hope You Found This Helpful