Game theory
Jonathan C. (}{_-3)
What is it?
• Uses models to study interactions with games.
• It applies to various fields like; economics,
biology, political science social psychology,
and military strategy.
• Study of decision making
• Applied Mathematics.
More to know
• Game theory show how people and nature
make simultaneous decisions.
Why am I interested?
• I am interested because, when I was younger I
always used to play chess and multiple other
two person games. I didn’t know math had
anything to do with those games until now.
Why is it important?
• It isn’t really important anymore but when I
was 7-12 I used to play 1-on-1 games.
• Now I cant even explain how it all works.
History
• The first recorded discussion of “The Game
Theory” was in 1713, it was written in a letter
bye James Waldegrave, he wrote in the letter
the solution to a two person game with a
minimax mixed strategy.
• A Danish mathematician Zeuthen, proved that
the model created by Waldgrave won with his
strategy called “Brouwer's fixed point
theorem” .
History Cont.
• Game theory did not exist until 1928 when
John Von Neumann published a paper about
it.
• Von Neumann’s original proof used Brouwer’s
theorem on continuous maps in convex sets,
in which it became the standard method in
game theory and mathematical economics.
Cont.
• His paper was followed by his book in 1944,
“Theory of games and Economic Behavior.”
• In some research after the book was written
the game theory expanded to cooperative
game theory, analyzes how people work in
decision in pairs or groups.
• In 1950 Merrill M. Flood and Melvin
Dresher(part of RAND Corp.) pursed possible
applications for global nuclear strategy.
Importance.. AGAIN
• Was once hailed as a Revolutionary
interdisciplinary(Mixing one or more academic
areas) phenomenon for bringing psychology,
mathematics, philosophy, and multiple other
areas.
• For business: analyzing economic
environments(oligopoly)
• Decision making. Making rational decisions,
or thinking of all possible options.
Interesting facts
• Two perfect example of game theory: Yu-GiOh and Battleship
Cont.
• Every game is part of this theory.
What I learned
• I’ve been participating in a complicated
mathematical theory, but once you read about
it, it’s pretty straight forward.
• Explaining how people make different
decisions when they’re alone.
Resources.
• http://levine.sscnet.ucla.edu/general/whatis.h
tm
• http://en.wikipedia.org/wiki/Game_theory#Hi
story
• http://www.investopedia.com/ask/answers/0
9/game-theory-business.asp
Extra info
• http://www.investopedia.com/articles/financi
al-theory/09/game-theory-beyondbasics.asp?viewed=1
• http://plato.stanford.edu/entries/gametheory/
• Levine, David. "What is Game Theory?."
levine.sscnet.ucla.edu. David K. Levine. Web. 6
Jun 2013.
• "Game theory." Wikipedia. N.p.. Web. 6 Jun 2013.
<http://en.wikipedia.org/wiki/Game_theory
• Pinkasovitch, Aurther. "Why is Game Theory
useful in business? ." Investopedia. N.p., 03
december 2009. Web. 6 Jun 2013.
<http://www.investopedia.com/ask/answers/09/
game-theory-business.asp>.
• Game Theory." Tandfore Encyclopedia of
philosophy. plato.standford.edu, 25 Jan 1997.
Web. 6 Jun 2013.
<http://plato.stanford.edu/entries/gametheory/>.