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# game theory

A mathematical theory, developed by J. von Neumann (1903-57) and O. Morgenstern (1902-77) in 1944, concerned with predicting the outcome of games of strategy (rather than games of chance) in which the participants have incomplete information about the others' intentions. Under perfect competition there is no scope for game theory, as individual actions are assumed not to influence others significantly; under oligopoly, however, this is not the case. Game theory has been increasingly applied to economics in recent years, particularly in the theory of industrial organizations. The theory was further elucidated by the economists John Nash, John Harsanyi, and Reinhard Selten, who received the Nobel Prize for Economics in 1994.

Big dictionary of business and management. 2014.

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• Game theory — is a branch of applied mathematics that is used in the social sciences (most notably economics), biology, engineering, political science, computer science (mainly for artificial intelligence), and philosophy. Game theory attempts to… …   Wikipedia

• game theory — ➔ theory * * * game theory UK US noun [U] ECONOMICS ► an economic theory that tries to calculate what choices people will make, when those choices depend on the choices of others: »Some of the most interesting ideas are coming from game theory,… …   Financial and business terms

• game theory — n. A branch of mathematics that deals with strategies for maximizing gains or minimizing losses in competitive situations having defined constraints and involving random factors. Note: Game theory is used for modelling and analysis of various… …   The Collaborative International Dictionary of English

• game theory — n. a method of using mathematical analysis to select the best available strategy in order to minimize one s maximum losses or maximize one s minimum winnings in a game, war, business competition, etc …   English World dictionary

• Game Theory —   [engl.], Spieltheorie …   Universal-Lexikon

• game theory — a mathematical theory that deals with strategies for maximizing gains and minimizing losses within prescribed constraints, as the rules of a card game: widely applied in the solution of various decision making problems, as those of military… …   Universalium

• game theory — The general theory of the rational behaviour of two or more people in circumstances where their interests are, at least in part, conflicting. In The Theory of Games and Economic Behaviour(1947), John Von Neumann and Oskar Morgenstern attempted to …   Dictionary of sociology

• game theory — noun (economics) a theory of competition stated in terms of gains and losses among opposing players • Syn: ↑theory of games • Topics: ↑economics, ↑economic science, ↑political economy • Members of this Topic: ↑ …   Useful english dictionary

• game theory — The systematic analysis in competitive conditions of strategies for the optimal selection of alternative courses of action. In game theory, unlike *decision theory, the outcomes of an individual’s decisions depend on the actions of other… …   Auditor's dictionary

• Game Theory — A model of optimality taking into consideration not only benefits less costs, but also the interaction between participants. Game theory attempts to look at the relationships between participants in a particular model and predict their optimal… …   Investment dictionary