A Description of Game Theory

Abstract

Game theory implies the logic of problematic situations with solutions through mathematical calculation. Since 1944, the game theory has been applied to military decisions, educational materials, and to find methods for complicated circumstances. The equilibria, different strategies to maximize surplus, and analysis of games could be inferred to assist players. The dominant strategy is the esse.ntial portion of the research to the game where the choice results in the best payoffs not affected by the other players' decisions. Closely connected to the dominant strategy, the Nash equilibrium represents the idea of the stable point where there is no profitable deviation for any player. Moreover, through calculation, the mixed strategy could be acquired, in situations when the probability of choices of all players is random, in the probability distribution. Finally, studies of shading the bid in auctions could maximize the surplus of bidders in partial auctions. The research could accommodate deliberate determinations in various games.