User:TQBP/Non-cooperative game theory

 Non-cooperative game theory 

Non-cooperative game theory deals with how rational economic agents trade with each other to achieve their goals. The most common non-cooperative game is the strategy game, in which only the available strategies and the outcomes of the combination of choices are listed. Negative-sum game and Zero-sum game are both non-cooperative game theory.

 The difference between cooperative and non-cooperative game theory 

There is a distinction between cooperative game theory and non-cooperative game theory. Non-cooperative game theory situations in which agents cannot reach a binding agreement. This theory has winners and losers in each case. Agents will have to predict what their opponents will do. Also, non-cooperative game theory does not involve Nash equilibrium. Cooperative game theory models situations in which a binding agreement is possible. In other words, the cooperative game theory implies that agents cooperate to achieve a common goal and they are not necessarily referred to as a team because the correct term is the coalition. Each agent has its skills or contributions that provide strength to the coalition.

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