Basics of Game Theory
Welcome! I'm really excited to dive into game theory with you. Before we sketch out our learning path and look at how people make strategic decisions, I'd love to learn a little bit about what brings you here.
To help me tailor this session to your needs, could you tell me a little about why you're interested in game theory, and if you have any prior exposure to the subject?
I'm completely new to this and just curious about how it works.
It is wonderful to have you here! Since you are completely new to this, we will start from scratch. Game theory is essentially the science of strategy, helping us understand how and why people make decisions when their choices affect one another.
Your path
Key Concepts: Dominant Strategies & Nash Equilibrium
Classic Examples: The Prisoner's Dilemma
Advanced Topics (Overview)
What is Game Theory?
At its heart, is the study of mathematical models that analyze among rational actors.
We are not just talking about chess or poker. In this field, a "game" is any interactive scenario involving two or more decision-makers where the final outcome depends on the collective choices of everyone involved.
Think of it as the ultimate playbook for understanding human behavior. Whenever you make a choice, and the success of that choice depends on what someone else does, you are playing a game. This framework is used by economists to predict business competition, by biologists to study evolutionary survival, and by political scientists to map out international negotiations.