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What is game theory?

Game theory is a set of analytical tools developed for understanding situations of interactions between (rational) individual decision makers (economic agents, social entities, participants to a game...), initially by John von Neuman [Von Neuman, 1944], and by John Nash [Nash, 1950] in his Ph.D. thesis. And, it became a very large field of applied mathematics and economics.

Why game theory?

Interactions, interactions, interactions... are everywhere!
But interactions are difficult to analyze using traditional tools of political science, sociology and economics:
Necessity of building new tools: The game theory reframes such situations as well-structured games that we can analyze

What is a game?

We reframe a specific situation of interaction as a game by answering the following questions:
Once these elements are clearly determined, we can start to search for answers to the main questions we have seen in the previous slide.

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(c) Murat Yildizoglu, 2021-