Game theory

branch of mathematics focused on strategic decision making

To compromise is to make a deal between different parties where each party gives up part of their demand. In arguments, compromise means finding agreement through communication, through a mutual acceptance of terms—often involving variations from an original goal or desires. Defining and finding the best possible compromise is an important problem in fields like game theory and the voting system.

economic concept of a state in which no reallocation of resources can make everyone at least as well off

self-interests causing depletion of a shared resource

Zugzwang (; ) is a situation found in chess and other turn-based games wherein one player is put at a disadvantage because of their obligation to make a move; a player is said to be "in zugzwang" when any legal move will worsen their position.

concept in many economic theories of humans as rational and narrowly self-interested actors who have the ability to make judgments toward their subjectively defined ends

theory of equilibrium between supply and demand

Collusion is a deceitful agreement or secret cooperation between two or more parties to limit open competition by deceiving, misleading or defrauding others of their legal right. Collusion is not always considered illegal. It can be used to attain objectives forbidden by law; for example, by defrauding or gaining an unfair market advantage. It is an agreement among firms or individuals to divide a market, set prices, limit production or limit opportunities. It can involve "price or wage fixing, kickbacks, or misrepresenting the independence of the relationship between the colluding parties". I

cost that has already been incurred and cannot be recovered

the idea that rationality is limited by the tractability of the decision problem, the cognitive limitations of the mind, and the time available to make the decision

game development process of designing the content and rules of a game

condition in economics and game theory

model in probability theory, used in gambling

hypothesis that the subjective value of a gamble is the statistical expectation of one’s valuations (which may differ from dollar values) of the gamble’s outcomes

human behavior pattern in which an individual or group facing increasingly negative outcomes from a decision, action, or investment nevertheless continues the behavior instead of altering course

in economics, studies how economic actors can and do construct contractual arrangements, generally in the presence of asymmetric information

phrase from economics

game where groups of players may enforce cooperative behaviour

quality of a strategic game player's strategy being better than another, for all opponents' strategies

practice of avoiding research whose cost exceeds its benefits

theorem in political science

economic model

process of reasoning backwards in time

entity that always performs optimal actions from given information

Coopetition (also spelled co-opetition, coopertition or co-opertition) is a concept in which firms or individuals engage in both cooperation and competition simultaneously. It describes situations where competing entities work together toward a common goal or share resources while still maintaining competitive interests in other areas. The term is a portmanteau of "cooperation" and "competition".

problem of sharing resources

situation where all parties are worse off

in economics theory

concept in game theory

economic concept

game theoretic concept of a strategy that produces the most favorable outcome for a player

restrained ability of human process reversal

paradox in game theory in which a combination of losing strategies becomes a winning strategy

level of information in economics and game theory

in a mathematical game, a statement that players know and also know that other players know (ad infinitum)

in game theory, set of all possible actions for a given player, built on their observations and a set for a particular player that, given what that player has observed, shows the decision vertices available which are undistinguishable to them

refinement of Nash equilibrium

theorem providing conditions that guarantee that the max–min inequality is also an equality

preference for fairness and resistance to incidental inequalities

voting power index based on pivotal probability

formal rule for predicting how a strategic game will be played

In board games that cannot end in a draw, one of the two players has a winning strategy

power index defined by the probability of changing an outcome of a vote where voting rights are not necessarily equally divided among the voters or shareholders

game-theoretic concept

study of algorithms in strategic environments

Determinacy is a subfield of game theory and set theory that examines the conditions under which one or the other player of a game has a winning strategy, and the consequences of the existence of such strategies. Alternatively and similarly, "determinacy" is the property of a game whereby such a strategy exists. Determinacy was introduced by Gale and Stewart in 1950, under the name determinateness.

situation in which two players (firms) reach a state of Nash equilibrium where both firms charge a price equal to marginal cost ("MC")

solution concept in game theory

a situation in which a group of people act to obtain short-term individual gains, which in the long run leads to a loss for the group as a whole

subcategory of welfare economics

Theorycraft (or theorycrafting) is the mathematical analysis of game mechanics (usually in video games) to discover optimal strategies and tactics. Theorycraft involves analyzing statistics, hidden systems or underlying game code in order to glean information that is not apparent during normal gameplay. Theorycraft is similar to analyses performed in sports or other games such as baseball's sabermetrics. The term has been said to come from StarCraft players as a portmanteau of "game theory" and "StarCraft".

fair division problem

theorem that a rational decision-maker has a utility function

a pragmatic approach to the semantics of logic

class of game where each player chooses their action without knowledge of the actions chosen by other players

Games

theorem in game theory about whether rational agents can agree to disagree

preference in decision theory and economics of known risks to unknown risks

apparent game theory paradox involving the chain store game, where a "deterrence strategy" appears optimal instead of the backward induction strategy of standard game theory reasoning

way to lock oneself into following a plan of action that one might not want to do, but which one knows is good for oneself