Game theory is a branch of applied mathematics that analyzes strategic interactions between agents. It includes concepts like Nash equilibrium, mixed strategies, and coordination games. Game theory is used in economics, political science, biology, and other social sciences to model how individuals make decisions in strategic situations where outcomes depend on the decisions of others.

1. BY: AMAR KUMARUSN:1PI07ME019GAME THEORY

2. OutlineWhat is Game Theory?

3. History of Game Theory

4. Key Elements of a game

5. Types of games

6. Pure Strategies & Mixed Strategies

7. 2 players Zero-Sum gamesNash equilibriumCoordination gamesApplications of game theory

8. What is game theory?Game theory is a branch of applied mathematics that is used in the social sciences, most notably in economics, as well as in biology (most notably evolutionary biology and ecology), engineering, political science, international relations, computer science, and philosophy.In strategic games, agents choose strategies that will maximize their return, given the strategies the other agents choose.

9. A design tool.

10. The mathematics of human interactions.

11. A promise for the unification of social sciences.History of game theoryvon Neumann wrote a key paper in 1928

12. 1944: “Theory of Games and Economic Behavior” by von Neumann and Morgenstern

13. 1950: Nash invents concept of Nash equilibrium

14. Game theory booms after this…

15. 1994: Harsanyi, Nash, and Selten win Nobel Prize in economics for game theory workKey elements of a gamePlayers: Who is interacting?

16. Strategies: What are their options?

17. Payoffs: What are their incentives?

18. Information: What do they know?