Game Theory 101: What is a 'game' in mathematics?
When most people hear the word “game,” they think of fun activities like chess, poker, or video games. But in mathematics, a “game” has a much broader and more precise meaning. Game theory studies strategic situations where the outcome depends not just on your choices, but on the choices of others too. What Makes Something a “Game”? In game theory, a game is any situation where: Multiple decision-makers (called “players”) interact Each player has choices (called “strategies”) they can make Each combination of choices leads to an outcome with specific rewards or costs (called “payoffs”) Players care about these outcomes and try to make rational decisions The beauty of this definition is that it applies to far more than board games. Business competition, political negotiations, evolutionary biology, and even social dilemmas are all “games” in the mathematical sense. ...