Game Theory

While decision makers are trying to manipulate their environment, their environment is trying to manipulate them

if you know the consequences of each of your options, the solution is easy

By viewing a complex situation as a game, you can translate the intuitive insights of an experienced observer into a quantitative model

but more important are the number of players involved and the extent to which their interests coincide or conflict

It is this blending of players’ mutual and conflicting interests that makes game theory fascinating

While you are trying to figure out what they are doing, they will be trying to figure out what you are doing

utility, information, optimal behavior, strategy, payoff, equilibrium, bargaining, and many more.

It was shown that social events can best be described by models taken from suitable games of strategy.

Yet social phenomena are different: people are acting sometimes against each other, sometimes cooperatively with each other; they have different degrees of information about each other, their aspirations lead them to conflict or cooperation