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1. The science of strategic interactions
1.1 The purpose of game theory
Game theory is a branch of mathematics which analyzes the behavior of individuals – called players – in situations of strategic interaction, where the outcome obtained by each protagonist depends on his or her own decision and those of others. It considers two categories of games: non-cooperative games and cooperative games. If the game is non-cooperative, each player chooses a strategy in his or her own best interest, independently of the others. If the game is cooperative, players form coalitions, with each coalition seeking to...
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