Game theory is a mathematical approach to finding the optimal strategy through game research. It is widely used in mathematics, economics, sociology, psychology and other sciences.
A game is a process involving two or more opposing sides. Each participant in the game applies one or another strategy that leads him to lose or win.
The emergence of game theory
Scientists first thought about game theory three centuries ago. This theory became more widespread in the middle of the 20th century, when Oskar Morgenstern and John von Neumann wrote the book Game Theory and Economic Behavior. Initially, game theory was used in economics, but later it began to be used in anthropology, biology, cybernetics, etc.
Content of the theory
The game assumes the presence of two or more participants, the behavior of each of which is associated with several options for the development of events and is not strictly defined. The parties participating in the game have opposite interests. Moreover, their behavior is interconnected, since the successes of one side lead to failures of the other and vice versa. In addition, the gameplay implies the presence of certain rules that the opposing sides follow.
The Prisoner's Dilemma
The concept of game theory can be summed up with a classic example called the Prisoner's Dilemma. Imagine that the police grabbed two criminals, and the investigator invites each of them to "turn in" the other. If one arrested person testifies against another, he will be released. But his accomplice will go to jail for 10 years. If both prisoners remain silent, then each of them will be sentenced to only six months in prison. If both testify against each other, they will receive 2 years. What strategy should the arrested take if each of them does not know what the other will do?
For each of those arrested, it will seem that in any case it is better to "hand over" the accomplice. If the accomplice is silent, it is better to “hand over” him and be released. If he also cooperates with the investigation, it is also better to “hand over” him and get 2 years. But if the criminal thinks about the common good, then he will understand that it is better to keep silent - then there is a chance to get only 6 months.
Application of game theory
There are several types of games - cooperative and non-cooperative, zero and non-zero sum, parallel and sequential, etc.
With the help of game theory in economics, for example, situations of strategic interaction are modeled. If there are two or more competitors on the market, the game always arises. The relationship between company employees - owners, managers and junior staff - also fits into game theory. Game theory is successfully used in applied psychology, modeling of cybernetic algorithms, physics and many other branches of science.
