A game is an interactive activity in which players use tools or resources to accomplish a goal. Some games involve skill while others are merely a matter of luck. Here are some common game categories:
Games can be defined as any form of play with rules, and they involve interaction and mental stimulation. They also typically involve a physical component, and are intended to bring people together for a particular purpose. Most games involve multiple players and group experiences, but some are solitary activities. Computer games are examples of such games. Games are also great stress relievers. And, of course, many games are fun. So, if you’re in the mood for a game, get up and play one!
The socialization process that occurs in young people and their surroundings has a profound effect on the way games develop. Many of the most complex games are already in play among socialized individuals, who have learned to copy the actions and strategies of their peers. In addition, these socialized individuals have access to the most important game structures and equilibria. These institutions are rich with reminders, from homilies to easily memorized rules of thumb.
Neuroeconomics also benefits from the study of game theory. In the animal kingdom, researchers have used the theory to analyze monkeys’ reward systems and predict their computations. When monkeys play an inspection game, they face a choice between working for a reward or shirking. They are only rewarded if the other monkey does not monitor them. It’s quite clear that monkeys use game theory to make a decision. But, as Glimcher notes, these findings do not necessarily mean that the resulting decisions are correct.
Game theory has evolved beyond the realm of economics. As it has become more integrated with microeconomic theory, the boundary between the two disciplines is blurred. As a result, game theory’s applications extend far beyond traditional economics into the social and behavioral sciences. For example, it’s often used in the legal system. That’s why many of today’s most compelling problems have a strong connection to game theory. It also explains how human behaviors are governed by social and economic factors.
Non-psychological game theory aims to explain the rationality of human decision making. This approach incorporates normative elements that require agents to behave rationally in non-parametric settings. The normative nature of game theory makes it compatible with tautological interpretations of utility maximization. In addition to the normative aspects of game theory, it also includes empirical considerations of human behavior. This is a common theme among game theories. In other words, game theory is a form of philosophy.