What is game theory? - Definition from WhatIs.com
Part of the Mathematics glossary:

Game theory is the study of mathematical models of negotiation, conflict and cooperation between individuals, organizations and governments. The study has direct applications in contract theory, economics, sociology and psychology.

Game theory is applied in various areas of study to understand why an individual makes a particular decision and how the decisions made by one individual affect others. The application of game theory concepts and techniques to non-game activities is known as gamification.

Game theory research involves studies of the interactions among people or groups of people. Because people make use of an ever-increasing number and variety of technologies to achieve desired ends, game theory can be directly applied in areas of negotiation, such as contract theory and indirectly applied in practical pursuits such as engineering, information technology and computer science.

So-called games can range from simple personal or small group encounters or problems to major confrontations between corporations or superpowers. One of the principal aims of game theory is to determine the optimum strategy for dealing with a given situation or confrontation. This can involve such goals as maximizing one's gains, maximizing the probability that a specific goal can be reached, minimizing one's risks or losses, or inflicting the greatest possible damage on adversaries.

Game theory was first devised by John Von Neumann. Later contributions were made by John Nash, A. W. Tucker, and others.

This was last updated in May 2016
Posted by: Margaret Rouse

Related Terms

Definitions

  • Khan Academy

    - The Khan Academy is a non-profit educational organization that provides free video tutorials and interactive exercises. (WhatIs.com)

  • learning curve

    - Learning curves are a visualization of the difficulty estimated in learning a subject over a period of time as well as relative progress throughout the process of learning. The learning curve provi... (WhatIs.com)

  • causation

    - Causation, or causality, is the capacity of one variable to influence another. The first variable may bring the second into existence or may cause the incidence of the second variable to fluctuate. (WhatIs.com)

Glossaries

  • Mathematics

    - Terms related to mathematics, including definitions about logic, algorithms and computations and mathematical terms used in computer science and business.

  • Internet applications

    - This WhatIs.com glossary contains terms related to Internet applications, including definitions about Software as a Service (SaaS) delivery models and words and phrases about web sites, e-commerce ...

Ask a Question. Find an Answer.Powered by ITKnowledgeExchange.com

Ask An IT Question

Get answers from your peers on your most technical challenges

Ask Question

Tech TalkComment

Share
Comments

    Results

    Contribute to the conversation

    All fields are required. Comments will appear at the bottom of the article.