
A branch of mathematics that considers the interactions of dynamic systems. A rich source of metaphors for describing simple models of behaviour. Game Theory attempts to mathematically capture behaviour in strategic situations, in which an individual's optimal choices depends on the choices of others Originally defined by the 1944 book "Theory of Games and Economic Behaviour" by John von Neumann and Oskar Morgenstern. Initially the focus was on modelling realworld situations as simple "games" then find an "equilibrium" where each player has selected an optimal strategy that they are unlikely to change. This methodology is not without criticism, and debates continue over its value. More recent applications have focused on the creation of simple (usually computer driven) models that explain apparently counterintuitive realworld behaviours. There are a variety of different "games" that each encapsulate the key elements of real situations:
Links to this pageThe following pages link to here: Game Theory, Prisoners dilemma, Tragedy of the Commons, Win Win Situation, Zero Sum Game 