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Game theory

math Maturity 13-18 Next article →

Have you ever wondered why people make certain choices? Sometimes our decisions depend on what others do. This is the core idea of game theory. It is a mathematical way to study strategic interactions.

John f nash 20061102 3
John f nash 20061102 3

This science helps us understand humans, animals, and even computers. It is used in many areas like economics and computer science. It helps us see how different players act to reach a goal.

Ultimatum Game Extensive Form
Ultimatum Game Extensive Form

There are different ways to look at these games. Some are called zero-sum games. In these, one person's gain is exactly balanced by another's loss. A game of poker is a good example of this.

JohnvonNeumann-LosAlamos
JohnvonNeumann-LosAlamos

Other games are non-zero-sum. In these, players might both win or both lose together. Some games are simultaneous, where everyone moves at the same time. Other games are sequential, where one person moves after another.

Centipede game
Centipede game

People have studied the math of games for a long time. Around 1564, Cardano wrote about games of chance. In 1657, Huygens published work on reasoning about games. Later, in 1713, Charles Waldegrave analyzed a card game called "le her." In 1838, Antoine Augustin Cournot created a model for business competition. By 1913, Ernst Zermelo showed how math applies to chess strategies. These early thinkers helped build the foundation for modern math.

Modern game theory really began in the 20th century. John von Neumann published important work in 1928. He and Oskar Morgenstern wrote a famous book in 1944. In 1950, John Nash developed a new idea. He found a way to see when players' choices are consistent. This is called a Nash equilibrium.

Cournot Duopoly Nash equilibrium
Cournot Duopoly Nash equilibrium

This discovery was very important for many different types of games. It helped move the science forward into new areas.

Today, game theory is a huge tool for many scientists. In the 1970s, it was used to study how animals evolve. John Maynard Smith won the Crafoord Prize in 1999 for this work. Many people have even won the Nobel Prize in economics. This includes John Nash in 1994 and Paul Milgrom in 2020. Others like Robert B. Wilson and Lloyd S. Shapley also won. These thinkers use math to solve real-world puzzles about how we live.

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🖼️ Images & Media (7)
File:JohnvonNeumann-LosAlamos.gif
JohnvonNeumann-LosAlamos.gif
File:John f nash 20061102 3.jpg
John f nash 20061102 3.jpg
File:PD with outside option.svg
PD with outside option.svg
File:An_example_of_diagram.jpg
An_example_of_diagram.jpg
File:Ultimatum Game Extensive Form.svg
Ultimatum Game Extensive Form.svg
File:Centipede game.svg
Centipede game.svg
File:Cournot Duopoly Nash equilibrium.png
Cournot Duopoly Nash equilibrium.png
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