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Basic Concepts for Game Theory
Abstract
Game theory has been variously described as the science of strategy or that of conflict resolution. At its core, it has the characteristics of a mathematical construct: a clear set of concepts and assumptions, fundamental theorems, and applications to real world issues. The fact that the issues in question are mostly the domains of the social sciences, however, places game theory in a peculiar position compared to other mathematical and scientific disciplines. Following von Neumann and Morgenstern's book, it is customary to analyze what we call game situations by using parlor games—already existing ones or ones specially constructed for this very purpose—as analytical models. This chapter does this.
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