#GameTheory: What is it?

Karmic Reaction Blog

By David K Levine, Professor of Economics, UCLA

What economists call game theory psychologists call the theory of social situations, which is an accurate description of what game theory is about. Although game theory is relevant to parlor games such as poker or bridge, most research in game theory focuses on how groups of people interact. There are two main branches of game theory: cooperative and noncooperative game theory. Noncooperative game theory deals largely with how intelligent individuals interact with one another in an effort to achieve their own goals. That is the branch of game theory I will discuss here.

In addition to game theory, economic theory has three other main branches: decision theory, general equilibrium theory and mechanism design theory. All are closely connected to game theory.

Decision theory can be viewed as a theory of one person games, or a game of a single player against nature…

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Author: Grandtrines

Like so many people, I am a paradox. I am a politically conservative vegetarian. I am from a Christian background, and still tend to like those values, but am a metaphysical astrologer trained in science who has an interest in the magic of ancient Egypt and a weird belief that some piece of our essence can live on a server. I live in Texas, but like chatting with my international Wordpress pals the best. I learn by teaching. Technically, I am a "Leo," but I am very, very Aquarian with a dose of Scorpio. I bitterly complain about Algol (and Algol personaliites), yet it is the one star that defines me most (other than Regulus). (Which, oddly, makes me an Algol personality.) I am a reclusive lover of peace and quiet who has the Ascendant in the Via Combusta (the most conflict ridden part of the zodiac). I am an incredibly private person with a blog with over 800 followers and 50 to 150 regular daily visitors. I could go on, but I think you get the picture.

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