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)
“Old age is far more than white hair, wrinkles, the feeling that it is too late and the game finished, that the stage belongs to the rising generations. The true evil is not the weakening of the body, but the indifference of the soul.”
—André Maurois (1885–1967)
“By the “mud-sill” theory it is assumed that labor and education are incompatible; and any practical combination of them impossible. According to that theory, a blind horse upon a tread-mill, is a perfect illustration of what a laborer should be—all the better for being blind, that he could not tread out of place, or kick understandingly.... Free labor insists on universal education.”
—Abraham Lincoln (1809–1865)