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Get to Know the Basic Terms Used in Game Theory
The study of game theory is made simpler and more known to scientists and researchers around the world with the aid of the following frequently used words, ensuring uniformity.
- Game : The term "game" refers to a set of circumstances whose outcomes depend on the decisions made by two or more players, also known as actors, who are the decision-makers.
- Players : The term "player" refers to the actors or other human entities that are active in the game and serve as the main decision-makers.
- Strategy : The term "strategy" refers to a comprehensive action plan that an actor or player will follow, regardless of the situation that may emerge as the game progresses.
- Payoff: The term "payoff" describes a quantifiable type of money that the participants or actors obtain as a result of achieving a particular result or outcome.
- Information Set: The amount of information that is accessible at a particular stage in the game is referred to as the information set. It is frequently employed, particularly when a sequential element is present in the game.
- Equilibrium: The term "equilibrium" refers to the specific point in the game when all of the actors or players have made their choices and a conclusion has been reached.
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- The influence of game theory on economic behavior
- The Prisoner’s Dilemma and its implications
- The role of game theory in understanding public goods and free-riding
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