Lecture Notes for 1st Year Ph.D. Game Theory
نویسندگان
چکیده
Game theory is a formal methodology and a set of techniques to study the interaction of rational agents in strategic settings. ‘Rational’ here means the standard thing in economics: maximizing over well-defined objectives; ‘strategic’ means that agents care not only about their own actions, but also about the actions taken by other agents. Note that decision theory — which you should have seen at least a bit of last term — is the study of how an individual makes decisions in non-strategic settings; hence game theory is sometimes also referred to as multi-person decision theory. The common terminology for the field comes from its putative applications to games such as poker, chess, etc.1 However, the applications we are usually interested in have little directly to do with such games. In particular, these are what we call “zero-sum” games in the sense that one player’s loss is another player’s gain; they are games of pure conflict. In economic applications, there is typically a mixture of conflict and cooperation motives.
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