Game Theory

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Game Theory is an approach to the study of agent behavior in a multi-agent environment. Game Theorists, either: - recommend a setup of incentives to guide the behavior to a desirable outcome, - or study a setup of incentives to predict the outcome.

It was created by Hungarian-American physicist, engineer and mathematician John von Neumann.

Agents decide their conduct mindful of their objectives. The most common objective is utility maximization.

Agents might decide simultaneously, which gives rise to "strategic games" or one after another, in a specific order, which gives rise to "extended games".

At decision time, agents might be certain or uncertain about the environment, as well as the incentives guiding other agents. Under the condition of perfect certainty, the game would be called a game of "perfect information," and a game of "imperfect information" otherwise.