Game Theory

This article presents general historical information on game theory and represents this topic in what is hoped to be language that is easily understandable to lay people without any prior knowledge of this subject. Also, there are explanatory definitions of general principles involved that have been developed in this field and further explorations of game theory attributes. Basic mathematics behind game theory are briefly touched on in a way that does not require too much technical knowledge for understanding how it works. For further clarification, examples are provided with some figures that demonstrate the applicability of game theory to various life circumstances.

Many may hear the words game theory and think that the term is referring to theories of game playing. However, this is not necessarily true, as game theory is about particular aspects of interactions between individuals or animals as they strive to achieve the ultimate [Page 261]outcomes from specific events. We often play “what if” games without being actively aware that we are doing so. Many everyday events can stimulate us to play “Chess matches” involving possible scenarios that depend on our actions in some combination with another party, and there definitely are different results on different occasions. Although this article appears in the Encyclopedia of Play in Today's Society and the implementation of game theoretical principles is certainly enjoyable and evokes playful qualities in human minds (at least that can be known), game theory is not simply about games that are played. It is about logical mathematical applications to strategic considerations of conflict scenarios involving player entities (both human and other animals), a method of determining a maximum benefit (or payoff) from the conflict for one or more of the players (via payoff matrices), and theoretical as well as literal implications of such episodes.

Game theory allows us to use formal logic to explain what is not typically discernable but is reliably true. Quite often, an individual who attempts to maximize his or her payoff must also simultaneously minimize the other player's payoff. According to David Barash, professor of psychology and zoology at the University of Washington, it might be said that the existence of other people who compete for similar interests that we want necessitates the reason for having game theory. Essentially, in game theory, players must necessarily account for not only their own interests but also others' behavior.