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Game theory reading notes
Game theory, also known as game theory, is a theory that uses rigorous mathematical models to study the optimal decision-making problems under the conditions of conflict and confrontation.

A game generally contains four basic elements:

(1) At least two participants. The participants in game theory are also called decision-making subjects, that is, people who make strategies in the game. There is no game without participants, and there are at least two participants. The performance of game participants is to make decisions to compete with each other's decisions and strive for the greatest interests for themselves. The relationship between participants is interactive, and you often need to refer to each other's strategies when making your own strategies.

(2) benefits. From the definition of game theory, we can know that the ultimate goal of two or more parties to play a game is to strive for the greatest benefit for themselves. Therefore, interest is an essential factor in the game.

(3) strategy. In the game, the decision-maker makes an action plan according to the information obtained and his own judgment. The action plan is a strategy. Generally speaking, strategy refers to the means, strategies and strategies formulated by decision makers to solve problems.

(4) information. Interest is the purpose of the game, strategy is the means to gain interest, and information is the basis for making strategies. If you want to make a strategy to beat each other, you must get comprehensive information and know each other better. The classification of games is to divide games into cooperative games and non-cooperative games according to whether there is a binding agreement between the participants of the games.

Cooperative game does not refer to the intention or attitude of cooperation between participants, but a binding agreement, agreement or contract between participants, and participants must play the game within the scope of these agreements. Non-cooperative game means that participants can't reach an agreement that is binding on all parties during the game.

Cooperative game is to study how to distribute benefits in cooperation, and its purpose is to satisfy all participants within the framework of the agreement, but the purpose of non-cooperative game is how to maximize benefits for itself, regardless of the interests of other participants. According to the choice strategy and decision order of participants, games can be divided into static games and dynamic games.

If participants choose strategies at the same time, or although they have priority, the participants who make decisions later don't know the strategies of other participants, it is a static game.

If the actions of the participants are sequential, and the latter defines their own strategies on the premise of understanding the former's strategies, this situation is a dynamic game. According to the game results, the game is divided into negative sum game, zero sum game and positive sum game.

Negative sum game, that is, both sides gain less than pay, and both sides lose. Zero-sum game means that one of the participants gains and the other loses, and the sum of the gains and losses between the participants is zero.

Gambling is the best embodiment of zero-sum game. Only winners have losers, and winners must win as much money as losers. Positive sum game is also called win-win game and cooperative game, which means that all participants can make profits, or the increase of one party's interests does not affect the interests of other participants. This game is called the game with the best ending, which is a win-win situation.

The core of game theory is that participants strive for their best interests by formulating strategies. ?