Game Theory¶
Summary¶
The mathematical study of decision-making and strategy in situations where outcomes depend on the choices of multiple rational actors.
Key Concepts¶
| Concept | Description |
|---|---|
| Cooperative games | Shared goals, free information exchange (teams, partnerships) |
| Non-cooperative games | Independent self-interest, winners and losers (competition) |
| Dominant strategy | Best choice regardless of what others do |
| Nash equilibrium | No player benefits from unilaterally changing strategy |
Classic Results¶
- Tit For Tat wins iterated prisoner's dilemma
- Always defect is rational in one-off games
- Repetition enables cooperation to emerge