Game theory mainly studies the interaction between formulated incentive structures, which is a mathematical theory and method to study phenomena with the nature of struggle or competition. Game theory considers the predicted behavior and actual behavior of individuals in the game, and studies their optimization strategies. Biologists use game theory to understand and predict some results of evolution.
Game theory has become one of the standard analytical tools in economics.
Game theory is that two people use each other's strategies to change their own confrontation strategies in an equal game to achieve the goal of winning. The idea of game theory has existed since ancient times, and China's ancient works such as The Art of War are not only military works, but also the earliest game theory works.
At first, the game theory mainly studied the winning or losing of chess, bridge and gambling. People's grasp of the game situation only stayed in experience, and did not develop into theory.
Extended information:
Elements
1. Players: In a competition or game, every participant with decision-making power becomes a player. The game phenomenon of only two players is called "two-player game", while the game of more than two players is called "multiplayer game".
2. Strategy: In a game, each player has a practical and complete action plan, that is, the plan is not an action plan at a certain stage, but a plan to guide the whole action, and a feasible action plan planned by a player from beginning to end is called a strategy of the player.
If everyone in a game always has a finite number of strategies, it is called "finite game", otherwise it is called "infinite game".
3. Gain and loss: The result at the end of a game is called gain and loss. The gains and losses of each player at the end of a game are not only related to the strategies chosen by the players themselves, but also related to a set of policies adopted by the players in the whole situation. Therefore, the "gain and loss" of each player at the end of a game is a function of a set of policies set by all players, which is usually called the payoff function.
4. For the game participants, there is a game result.
5. The game involves equilibrium: equilibrium means equilibrium, and in economics, equilibrium means that the related quantity is at a stable value. In the relationship between supply and demand, if a commodity market is at a certain price, everyone who wants to buy this commodity at this price can buy it, while everyone who wants to sell it can sell it. At this time, we say that the supply and demand of this commodity have reached a balance. The so-called Nash equilibrium is a stable game result.
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