Games, also known as video games, electronic games, or interactive media, are designed to entertain or educate an individual. Computer games are big business, and millions of people around the world enjoy playing them. WarCraft II, a game by the Blizzard entertainment company, is just one example of many games available on the market today. They are categorized into many genres, with several rules variations. Whether they are competitive or cooperative, people of all ages and abilities can find a game to enjoy.
The ideal theory predicts the behavior of players, but in reality people behave much noisier. This makes NE game play less rational than it should be. The behavior of people differs depending on their expectations of other players. For example, a strategy of cooperating might lead to a win, whereas a strategy of defecting would cause a loss. But this idea is unfounded, and the game theory community is still experimenting with various mechanisms for a better understanding of human behavior.
According to professor emeritus of the University of Maryland’s Robert H. Smith School of Business, a game is a competition between players with different goals. It involves the skill, chance, endurance, and strategy of players in two or more players, usually for the amusement of both players. Games can also include real-world competitive situations such as missile defense, energy regulation, auditing tax payers, labor-management negotiations, and the stock market.
Games differ in rules, tools, and environments. Some require luck while others require skill. Many games have rules or tools to determine the outcome. A good example is chess. In this game, players move pieces from one space to another, and the result is the best way to win. Whether these games are skillful or not is largely dependent on the individual’s abilities and experience. So, it is essential to choose the right type of game.
Classical and evolutionary game theory have many further applications. This analytical tool is an important analytical tool, and a reader with an interest in game theory should be able to work through the massive literature that is available to further his or her understanding. To get a taste of the game theory literature, here are some book and article highlights. I have included links to books and articles that made a significant impact on game theory. These highlights represent only a small part of the entire game theory literature.
The development of the field of economics has led to the study of game theory. Several major authors have contributed to the field, including Nash, J., and Richard H. Thaler. The Journal of Economic Perspectives published a symposium on game theory in 2007. Increasingly, the field has become interconnected with other branches of the social sciences, such as philosophy. Similarly, the field has reached the point where applications are widespread beyond the traditional boundaries of economics, spanning into the social and behavioral sciences.
Economic theory has been tested by running laboratory experiments since Thurstone’s (1931) book. The volume of such studies has increased dramatically in the last few decades. While most of this work is empirical in nature, it is still largely based on game theory and the concept of imperfect competition. If this theory is valid, then economists can expect it to explain the behavior of agents in complex, non-parametric settings. This type of study is the most widely used in economics today.