User:Danitayssoun/Sample page

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Game theory

What is Game Theory? Game theory, as it relates to economics, is the examination of the ways in which the interacting choices of varying parties, two or more, result in outcomes as a consequence of those choices. Its origination is attributed largely to the work and publications of John von Neumann and Oskar Morgenstern. It is a phenomenon that can be observed quite frequently, with games taking place on large and small scales alike, “Adolf Hitler and Josef Stalin played a game that killed off a substantial fraction of the world’s population” (Binmore, Playing For Real, 2007). While at the same time “Drivers maneuvering in heavy traffic are playing a game with the drivers of the other cars” (Binmore, Playing For Real, 2007). A game is a given situation and the rules which describe it, and a play is every particular instance at which the game is played or a choice is made. Within a game there are a certain number of players and those players are given choices between various alternatives. .


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