Games

In childhood, we grew to learn and love different games for entertainment. It is also a way to bond with friends, families, and others. We have Chinese garter, Nanay-Tatay, Langit-Lupa, and the like in the Philippines. However, the topic we will discuss is not necessarily associated with the games we know and love. It is usually used to analyze formal interactions such as elections, business competition, and war (Nocon & Nocon). Who knew such an innocent and child-like word as "games" could be put into a mathematical context?  

DEFINITION

Game theory is a mathematical framework that models strategic interactions between individuals or groups. It has applications in various fields, including economics, politics, and biology. In the real world, game theory is used to understand and analyze multiple situations, such as negotiations between countries, competition between firms, and even dating. By examining the incentives and strategies of each player, game theory can provide insights into how different outcomes might arise and how to navigate complex situations. For example, in business, game theory can be used to analyze pricing strategies, product development, and market entry decisions. In politics, game theory can be used to study voting behavior and international conflicts. Game theory is a powerful tool for understanding human behavior and decision-making in various contexts. 

The mathematician John von Neumann, and economist Oskar Morgenstern, pioneered the game theory in the 1940s. John Nash, a mathematician, is regarded by many as the one who provided the first significant extension of the work of von Neumann and Morgenstern. The game is the focus of game theory - it serves as a model of an interactive situation among rational players (Hayes, 2020). One player's playoff is contingent on the strategy implemented by the other player.