Game Theory

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Game Theory Picture if you will a group of people making decisions. The decisions that are made do not have to be significant at all. They have to be just significant to the situation at hand. This concept is considered to mathematicians as Game Theory. Game Theory is broken down into tree different types of games. As stated by Thomas S. Ferguson of UCLA “There are three main mathematical models or forms used in the study of games, the extensive form, the strategic form and the coalitional form”. Some games that are the most popular to being discussed in Game Theory are chess, checkers, and tic-tac-toe (Ferguson). There are also different terms that are used in this theory as well. Some of the major terms are The Nash Equilibrium, Utility Theory, perfect information, imperfect information, and no chance moves. Game theory is broken down by the timeline of game theory, the terms, and why it is studied. Timeline of Game Theory Game theory something that has been studied for a long time in history. In early history several people tried to get a grips on what was happening to society and used something similar to Game Theory to do it. At that time what Game Theory was mostly involved talking about economics. The first known written information about the theory in a mathematical context was from mathematician named James Waldegrave in 1713, he was writing a letter that described minimax system that was about how winning a card game (Open Options Corporation, 2007). The card game he was writing about is called le Her. The game is not the complicated and the minimax system he wrote about was to figure out all the different possibilities of winning this game if you are either player one or player two (Ethier, 2009). There are s... ... middle of paper ... ...athematician. Retrieved April 17, 2011, from New York Times.com: http://www.nytimes.com/1995/01/27/obituaries/albert-w-tucker-89-pioneering-mathematician.html Nash, J. (1994). John Nash Autobiography. Retrieved April 17, 2011, from nobelprize.org: http://nobelprize.org/nobel_prizes/economics/laureates/1994/nash-autobio.html Norstad, J. (2010, January 19). An Introduction to Utility Theory. Retrieved April 17, 2011, from http://homepage.mac.com: http://homepage.mac.com/j.norstad/finance/util.pdf Open Options Corporation. (2007, May 4). Introduction to Game Theory. Retrieved April 17, 2011, from http://www.rotman.utoronto.ca/icpm/Open%20Options_Introduction_To_Game_Theory.pdf Shor, M. (2005, August 15). Perfect Information. Retrieved April 17, 2011, from Dictionary of Game Theory Terms, Game Theory .net: http://www.gametheory.net/dictionary/PerfectInformation.html

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