Classical Game Theory
Game theory was conceived by John von Neumann to mathematically determine optimal strategies in situations in which a competition between adversaries is taking place. A contest involves a number of players, all of whom have a choice of moves for the game. Games can be a single round or repetitive. The approach a player has in making his or her moves constitutes the player's "strategy". Rules govern the outcome for the set of moves taken by the players and outcomes produce payoffs for the various players; rules and resulting payoffs can be expressed as decision trees or in a payoff matrix.
Classical game theory essentially requires that all of the players make rational choices (that is, making their strategic choice on a wholly rationally-determined evaluation of probable outcomes). As a consequence, it is fundamental in game theory that each player must consider the strategic analysis that the players' opponents are making in determining that his or her own strategic choice is appropriate.
Read more about this topic: Evolutionary Game Theory
Famous quotes containing the words classical, game and/or theory:
“Against classical philosophy: thinking about eternity or the immensity of the universe does not lessen my unhappiness.”
—Mason Cooley (b. 1927)
“I have a notion that gamblers are as happy as most people, being always excited; women, wine, fame, the table, even ambition, sate now & then, but every turn of the card & cast of the dice keeps the gambler alive—besides one can game ten times longer than one can do any thing else.”
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“We have our little theory on all human and divine things. Poetry, the workings of genius itself, which, in all times, with one or another meaning, has been called Inspiration, and held to be mysterious and inscrutable, is no longer without its scientific exposition. The building of the lofty rhyme is like any other masonry or bricklaying: we have theories of its rise, height, decline and fall—which latter, it would seem, is now near, among all people.”
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