Achieving optimal collaboration when goals conflict

New research suggests that, when two people must work together on a physical task despite conflicting goals, the amount of information available about each other's actions influences how quickly and optimally they learn to ...

Prisoner's dilemma game reveals cooperation leads to leadership

Game theory is a field which applies mathematics to understand the science behind logical decision-making behavior and social structures. Game theory has historically studied cooperation and hierarchy, and has sought to explain ...

Too much inequality impedes support for public goods

Too much inequality in society can result in a damaging lack of support for public goods and services, which could disadvantage the rich as well as the poor, according to new research from the University of Exeter Business ...

How much would you pay to change a game before playing it?

When most people think of a "game," they might imagine checkers or hopscotch. But in game theory, a game is defined as any type of scenario where there's an interaction between different decision-makers, or players, each ...

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Game theory

Game theory is a branch of applied mathematics that is used in the social sciences (most notably economics), biology, engineering, political science, international relations, computer science, and philosophy. Game theory attempts to mathematically capture behavior in strategic situations, in which an individual's success in making choices depends on the choices of others. While initially developed to analyze competitions in which one individual does better at another's expense (zero sum games), it has been expanded to treat a wide class of interactions, which are classified according to several criteria. Today, "game theory is a sort of umbrella or 'unified field' theory for the rational side of social science, where 'social' is interpreted broadly, to include human as well as non-human players (computers, animals, plants)" (Aumann 1987).

Traditional applications of game theory attempt to find equilibria in these games. In an equilibrium, each player of the game has adopted a strategy that they are unlikely to change. Many equilibrium concepts have been developed (most famously the Nash equilibrium) in an attempt to capture this idea. These equilibrium concepts are motivated differently depending on the field of application, although they often overlap or coincide. This methodology is not without criticism, and debates continue over the appropriateness of particular equilibrium concepts, the appropriateness of equilibria altogether, and the usefulness of mathematical models more generally.

Although some developments occurred before it, the field of game theory came into being with the 1944 book Theory of Games and Economic Behavior by John von Neumann and Oskar Morgenstern. This theory was developed extensively in the 1950s by many scholars. Game theory was later explicitly applied to biology in the 1970s, although similar developments go back at least as far as the 1930s. Game theory has been widely recognized as an important tool in many fields. Eight game theorists have won Nobel prizes in economics, and John Maynard Smith was awarded the Crafoord Prize for his application of game theory to biology.

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