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
Economics
Most companies use game theory to make the optimal business decisions. Eight game-theorists have won the Nobel Memorial Prize in Economic Sciences
Military
It is essential in making military decisions including preemptive strikes. Generals including Izenhour and Sun Tzu used it to plan their moves.
Social Sciences
For all you ES'er reading this;) Game theory explains why everybody giving up part of their rights serves the common good (best payoff).
Hope You Found This Helpful
GS: Think BIG Think General
Ibrahim Itani
Email: ibrahim.itani.12@facebook.com
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