ECON 3M03 Lecture Notes - Lecture 1: Binary Relation, Utility, Roger Myerson
Document Summary
Game theory formalizes strategic interaction between decision - makers (players, economic agents) Decision makers have personal interests (objectives) and the ability to make decisions (actions, which affect payoffs of others. Game theory is the study of multiperson decision problems - robert gibbons. Game theory is a bag of analytical tools designed to help us understand the phenomena that we observe when decision - makers interact - martin osborne and ariel rubenstein. Game theory is the study of mathematical models of conflict and cooperation between intelligent rational decision makers - roger myerson. Game theory, of course, is more general than the analysis of. Markets, auctions, political competition, bargaining, joint work, social interactions, and much more. In general, game theory is well suited to analyze small isolated environments: These environments involve a limited number of decision - makers, whose actions affect each other.
