game theory
Rational decision science
Game theory is the mathematical study of strategic decision-making—how rational actors choose actions when outcomes depend on what others do.
It analyzes situations from poker to nuclear deterrence, business competition to evolutionary biology.
Key concepts include the prisoner's dilemma, Nash equilibrium, and zero-sum games.
Game theory predicts that both sides will defect even when cooperation would benefit everyone.
Balanced gains and losses
- rivalryOngoing contest between opponents
- adversaryEnemy in conflict
- opponentOne who contends against
- winnerOne who prevails
loser · conflict · arms race · auction · bidding war · price war · predatory · cutthroat
English-origin family name
- equilibriumState of balance
- dominantHaving superior influence
- minimaxWorst-case loss reduction
- payoffCulminating benefit received
zero-sum · non-zero-sum · mixed · pure · sequential · simultaneous · optimal · subgame
Formal union of parties
- coalitionTemporary alliance for action
- collusionFraudulent secret cooperation
- coordinationOrganized cooperative movement
- mutualShared between parties
reciprocal · tit-for-tat · trust · bargaining · negotiation · win-win · collective action · binding agreement
Strategic game theory scenario
- chickenDomestic fowl for eating
- coordinationOrganized cooperative movement
- tragedy of commonsShared resources, individual overexploitation
- free riderOne benefiting without contributing
defection · cooperation · temptation · sucker · punishment · reward · iterated · repeated
Rewards prompting action
- auctionCompetitive public sale
- oligopolyFew firms dominate market
- duopolyTwo-seller market structure
- monopolyOne seller, no substitutes
market · externalities · public goods · free rider · principal-agent · moral hazard · adverse selection · screening
Thing that duplicates
- fitnessGood physical shape
- adaptationFitting to new conditions
- chickenDomestic fowl for eating
- survivalRemaining alive against odds
mutation · selection · population · dynamics · altruism · signaling · mimicry
Sound judgment quality
- biasUnfair inclination or prejudice
- heuristicsPractical problem-solving shortcuts
- loss aversionSetbacks sting more than gains please
- fairnessJust and equal treatment
ultimatum · dictator · altruism · spite · envy · punishment · reciprocity · framing
zero-sum
Balanced gains and losses
winner · loser · conflict · arms race · auction · bidding war · price war · predatory · cutthroat · first-mover
Nash
English-origin family name
- equilibriumState of balance
- dominantHaving superior influence
- minimaxWorst-case loss reduction
payoff · zero-sum · non-zero-sum · mixed · pure · sequential · simultaneous · optimal · subgame · perfect
alliance
Formal union of parties
- coalitionTemporary alliance for action
- collusionFraudulent secret cooperation
- coordinationOrganized cooperative movement
mutual · reciprocal · tit-for-tat · trust · bargaining · negotiation · win-win · collective action · binding agreement · cheap talk
prisoner's dilemma
Strategic game theory scenario
- chickenDomestic fowl for eating
- coordinationOrganized cooperative movement
- tragedy of commonsShared resources, individual overexploitation
free rider · defection · cooperation · temptation · sucker · punishment · reward · iterated · repeated · one-shot
incentives
Rewards prompting action
monopoly · market · externalities · public goods · free rider · principal-agent · moral hazard · adverse selection · screening · signaling
replicator
Thing that duplicates
- fitnessGood physical shape
- adaptationFitting to new conditions
- chickenDomestic fowl for eating
survival · mutation · selection · population · dynamics · altruism · signaling · mimicry
rationality
Sound judgment quality
- biasUnfair inclination or prejudice
- heuristicsPractical problem-solving shortcuts
- loss aversionSetbacks sting more than gains please
fairness · ultimatum · dictator · altruism · spite · envy · punishment · reciprocity · framing · anchoring
- theories & lawssupply and demand, law of demand, law of supply, Parkinson's law, Peter principle
- fields of studyart, music, mathematics, history, biology
- academic fieldsmathematics, biology, chemistry, physics, history
- economicssupply and demand, inflation, GDP, GNP, gross domestic product
- strategystrategy, grand strategy, tactics, tactic, tactical
- applied mathlinear programming, differential equations, statistical methods, probability, statistics
game theoryprobability theory
Mathematics of likelihood analysis
intuition · gut instinct · heuristics · trial and error · random chance
game, theory, games, gaming, gamer, theorem, theories, theoretical, theorize