Various games are played between players in a competitive situation. They can involve skill, luck, endurance, and a number of other variables. The main objective of a game is to entertain players or spectators. Real-world examples of games include missile defense, energy regulation, labor-management negotiations, bidding on auctions, advertising, voting, the stock market, and conflict resolution. Here are some rules for games. And learn more about the importance of games.
It is a model of an interactive situation among rational players
Game theory describes situations in which the actions of all agents depend on each other. An archetypal example of an interactive situation is two people playing chess. But interactive situations can occur in a variety of contexts, including elections, wage bargaining, market transactions, arms races, and international negotiations. A game is a model of an interactive situation among rational players. In such situations, rational agents should avoid asking “what is likely to happen?” but instead ask, “What is the most likely outcome?”
It is a study of strategy
The basic concepts of strategy in games were introduced in the book, Games of Strategy: Theory and Applications, by Melvin Dresher, a researcher at the RAND corporation. The book introduced many applications of game theory in military, economic, and political issues. It was useful for decision-making in business and operations research, as well as for the study of behavioral science. Here are some of its more interesting aspects.
It is a study of coalitions
Coalition formation theory is a branch of game theory that studies the formation of groups of agents that jointly decide on actions. Coalitions may be formed in cooperative and non-cooperative games. In each type of game, the members of a coalition agree on the action of their group, coordinate this agreement, or interact with non-members. Coalition formation theory is concerned with two aspects: the formation of groups, and the coordination of the actions of those groups.