Notebook & Site Glossary:

A B C D E F G H I L N O P R S T U

Game Theory

Game theory is a branch of mathematics and economics that studies strategic interactions between individuals, organizations, or even nations, where the outcomes depend not only on an individual's choices but also on the choices of others. It is used to analyze situations in which participants, known as "players," make decisions that are interdependent, meaning that each player’s decision affects the outcomes for the others. This creates a situation of "strategic dependence," where each player must consider the potential actions and reactions of others when making choices. Behavioral game theory is a branch of game theory that incorporates insights from psychology and behavioral economics to understand how real people make decisions in strategic situations. Traditional game theory assumes that players are perfectly rational and aim to maximize their own payoffs, often predicting that individuals will act in highly calculated ways. However, behavioral game theory acknowledges that real people are subject to biases, emotions, limited cognitive abilities, and social preferences, which can lead them to behave in ways that diverge from purely rational predictions. Applied game theory is the practical use of game theory models and principles to solve real-world problems across various fields, including economics, business, political science, biology, engineering, and more. While theoretical game theory focuses on creating abstract models to understand strategic interactions in idealized settings, applied game theory uses these models to analyze and improve actual decision-making situations where individuals or groups interact strategically. The goal of applied game theory is to provide insights, strategies, and predictions that can inform decisions in complex, interdependent environments where the actions of one player affect others. This field often involves refining theoretical models to account for real-world complexities, making game theory more relevant and actionable.

Games Against The Self

Games against the self refer to strategic decision-making scenarios where an individual is effectively competing or interacting with themselves over time. These situations involve internal conflicts or trade-offs between different aspects of the self, such as short-term desires versus long-term goals, or emotional impulses versus rational decision-making. Unlike traditional games involving multiple players, games against the self focus on the internal dynamics of a single individual’s choices and their consequences.

Index Of Tactical Notebook Articles In Order Of Suggested Reading:

This index is a revision of our now removed Legacy Member Handbook series. New articles are added over time and the index adjusted accordingly. Visist the “Updates” environment (linked in the main navigation menu) to get up to speed or see when new content is added or changes have been made to existing articles.