Game Theory - General and Applied Uses

General and Applied Uses

As a method of applied mathematics, game theory has been used to study a wide variety of human and animal behaviors. It was initially developed in economics to understand a large collection of economic behaviors, including behaviors of firms, markets, and consumers. The use of game theory in the social sciences has expanded, and game theory has been applied to political, sociological, and psychological behaviors as well.

Game-theoretic analysis was initially used to study animal behavior by Ronald Fisher in the 1930s (although even Charles Darwin makes a few informal game-theoretic statements). This work predates the name "game theory", but it shares many important features with this field. The developments in economics were later applied to biology largely by John Maynard Smith in his book Evolution and the Theory of Games.

In addition to being used to describe, predict, and explain behavior, game theory has also been used to develop theories of ethical or normative behavior and to prescribe such behavior. In economics and philosophy, scholars have applied game theory to help in the understanding of good or proper behavior. Game-theoretic arguments of this type can be found as far back as Plato.

Read more about this topic:  Game Theory

Famous quotes containing the words general and/or applied:

    You don’t want a general houseworker, do you? Or a traveling companion, quiet, refined, speaks fluent French entirely in the present tense? Or an assistant billiard-maker? Or a private librarian? Or a lady car-washer? Because if you do, I should appreciate your giving me a trial at the job. Any minute now, I am going to become one of the Great Unemployed. I am about to leave literature flat on its face. I don’t want to review books any more. It cuts in too much on my reading.
    Dorothy Parker (1893–1967)

    He is not a true man of science who does not bring some sympathy to his studies, and expect to learn something by behavior as well as by application. It is childish to rest in the discovery of mere coincidences, or of partial and extraneous laws. The study of geometry is a petty and idle exercise of the mind, if it is applied to no larger system than the starry one.
    Henry David Thoreau (1817–1862)