Non-Cooperative Game Theory
Non-Cooperative Game Theory studies how individuals or groups make decisions independently in competitive situations where collaboration is not allowed. Each player aims to maximize their own benefit while anticipating the actions of others. Common examples include bidding in auctions, pricing strategies in business, or strategic moves in sports. Unlike cooperative games, where contracts and alliances can be formed, non-cooperative games focus on how players interact when they cannot rely on mutual agreements, highlighting the importance of strategy and prediction in achieving the best outcomes.
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Non-cooperative game theory is a branch of mathematics that studies how individuals or groups make choices in competitive situations where they cannot collaborate or form binding agreements. Each player acts independently to maximize their own benefit, often leading to strategic decision-making. The outcomes depend on the actions of all players, resulting in various scenarios such as competition, conflict, or cooperation that isn't formalized. Common examples include market competition and negotiations, where the decisions of one player directly impact the options and outcomes available to others. It helps explain and predict behaviors in economics, political science, and social dynamics.