Game theory is a branch of mathematics that studies strategic decision making.
It is used to model and analyze interactions between different agents, such as individuals or organizations, where the outcome of each agent's decision depends on the decisions of the other agents.
Game theory can be applied in many fields, including economics, political science, and military strategy.
Deals with the strategy, decision making and tactics of the players/agents under uncertain environment.
Widely used in the field of military and business.
You can see how it may be important to use game theory in understanding business and competition.
Frameworks to live by and build a life or family with.
I’m creating a set of ABCs books that explains different principles of game theory and decision making and many many more topics moving forward.
Here is a sample of the game theory book I have started:
A is for Agent. An agent is any individual or organization that makes decisions and takes actions in a game or decision-making scenario.
B is for Best response. A best response is the strategy that an agent chooses that maximizes their payoff given the strategies of the other agents.
C is for Cooperation. Cooperation refers to situations where agents work together to achieve a common goal, even if it means giving up some individual gain.
D is for Decision making. Decision making is the process of choosing a course of action from a set of options.
E is for Equilibrium. An equilibrium is a state in which all agents are choosing their best responses given the strategies of the other agents.
F is for Fairness. Fairness is a principle that refers to the distribution of resources or benefits in a way that is considered just or equitable.
G is for Game theory. Game theory is a branch of mathematics that studies decision making in situations where the outcome depends on the actions of multiple agents.
H is for Hedging. Hedging is a strategy where an agent takes actions to reduce the risk of a negative outcome.
I is for Incentives. Incentives are rewards or penalties that motivate an agent to choose a particular course of action.
J is for Joint decision making. Joint decision making refers to situations where multiple agents must come to an agreement on a course of action.
K is for Knowledge. Knowledge refers to information that an agent has about the game or decision-making scenario.
L is for Logic. Logic is the process of reasoning and making decisions based on evidence and sound reasoning.
M is for Maximize. To maximize is to choose the option that leads to the greatest benefit or lowest cost.
N is for Nash equilibrium. A Nash equilibrium is a state in which no agent can improve their payoff by changing their strategy, given the strategies of the other agents.
O is for Opponent. An opponent is another agent who is making decisions in the same game or decision-making scenario.
P is for Payoff. A payoff is the benefit or cost that an agent receives as a result of their decision or action.
Q is for Quantify. To quantify is to express a value or concept in numerical terms.
R is for Risk. Risk is the chance that an action or decision will lead to a negative outcome.
S is for Strategy. A strategy is a plan or course of action that an agent chooses in a game or decision-making scenario.
T is for Trade-off. A trade-off is a situation where an agent must choose between two or more options, each with its own costs and benefits.
U is for Utility. Utility is a measure of the benefit or satisfaction that an agent receives from a particular outcome.
V is for Values. Values are principles or beliefs that guide an agent's decision making.
W is for Win-win. A win-win situation is one in which all agents benefit from the outcome.
X is for eXternalities. Externalities are the effects of an agent's actions that are felt by other agents or the environment.
Y is for Yielding. Yielding is a strategy where an agent chooses to give in or concede to the demands of another agent.
Z is for Zero-sum. A zero-sum game is a situation in which one agent's gain is exactly balanced by the loss of the other agent.
The explanations provided for each letter are meant to be simple and easy for people who are unfamiliar or children to understand.
I hope these books will be a great tool to introduce children to the concepts of game theory, decision making, and strategic thinking in a fun and engaging way.
Over the next year or so I hope to have a complete set of maybe a dozen or two books that people can use as a simple guidebook and resource for learning and growth.
Stay strong,