Game theory

Key concepts

The individuals or groups who are making decisions.

The different actions that a player can choose from.

The outcomes of a game, often represented as a matrix showing the payoffs for each combination of strategies chosen by the players.

A set of strategies such that no player can benefit by changing their strategy, given the strategies of the other players.

A strategy that is always the best choice for a player, regardless of the strategies chosen by the other players.

A type of equilibrium in which each player's strategy is a best response to the strategies of the other players.

A strategy in which a player randomly chooses among a set of possible actions.