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Game Theory

Also Known As Theory of Games
Mathematical Physics, Biology and Game Theory

The mathematical study of strategic decision-making among agents whose outcomes depend on each other's choices. John von Neumann proved the minimax theorem for two-player zero-sum games in 1928, showing a rational optimal strategy always exists in such a game, and with the economist Oskar Morgenstern gave the field its first general mathematical formulation in Theory of Games and Economic Behavior (1944). John Nash extended the framework beyond zero-sum, two-player settings in 1950, defining the solution concept now called the Nash equilibrium, a set of strategies from which no single player can improve their own outcome by changing strategy alone. A separate strand, combinatorial game theory, grew out of the study of two-player games of perfect information with no chance element: John Conway developed it while analyzing Go endgames at Cambridge, publishing the theory, and the surreal numbers that fell out of it, in On Numbers and Games (1976). Both strands meet chess and Go directly. Chess is the standard worked example of minimax search over a game tree; Claude Shannon estimated the lower bound of that tree's own complexity at roughly 10 to the 120th power of possible games in his own 1950 paper Programming a Computer for Playing Chess, a number still cited as the reason brute-force solution is impossible. Go endgames are where combinatorial game theory itself began.

Facts
Central Question
Given that every player's own best choice depends on what every other player chooses, does a stable, rational strategy exist at all, and if so, what is it? 2
Key Debate
Whether the field's own core assumption, that players are rational actors maximizing a well-defined payoff, describes how people and institutions actually behave, or is a simplifying idealization useful chiefly as a benchmark; the gap between predicted equilibria and observed play in laboratory and real-world settings is itself an active field, behavioral game theory. 2
Classification
Pure or Applied
Applied Mathematics 1
Learn More
A Number Ten to the 120th

This article records tradition as it has been passed down and reported. Its sources are not yet part of the atlas's verified catalogue.

In 1950, Claude Shannon published a paper with a modest title, Programming a Computer for Playing Chess, that founded computer chess as a field before a single working chess program existed to test it against. Buried in the paper is a calculation Shannon almost certainly meant as an aside: an estimate of how many distinct games of chess are possible, arrived at from roughly 30 legal choices per move and a typical game running 40 moves per side. The number that falls out, on the order of 10 to the 120th power, is now called the Shannon number, and it is not a claim about how many games have been played or ever will be. It is a claim about why a certain kind of solution to chess was never going to work. A player, or a computer, considering the full game tree, every possible sequence of moves from the current position to the end of the game, cannot simply enumerate all of them and pick the best line, because there are more of them than there are atoms usually estimated to exist in the observable universe. Shannon's own point was not that chess is unsolvable in principle; two-player games of perfect information with no chance element are, in a strict mathematical sense established well before Shannon wrote, always solvable by exhaustive search given enough time. His point was that no amount of raw computing power anyone would ever plausibly build could do that exhaustive search directly, which meant a chess-playing program would have to evaluate positions heuristically rather than by looking all the way to the end. Every chess engine built since, from the first primitive programs of the 1950s through the systems that eventually beat human world champions, has been an answer to the problem Shannon's own number stated rather than solved.

Numbers That Fell Out of a Board Game

This article records tradition as it has been passed down and reported. Its sources are not yet part of the atlas's verified catalogue.

John von Neumann and John Nash built the branch of game theory most people mean by the term: players with defined payoffs, choosing strategies, converging or failing to converge on an equilibrium. John Conway built a different one almost by accident, while trying to understand the endgame of Go. Late-stage Go positions often break into several independent regions of the board where play barely interacts, and Conway, analyzing how the value of each region combines with the others, found that the combining itself obeyed rules that looked exactly like arithmetic on a new and much larger kind of number. He worked out the theory properly and published it in 1976 as On Numbers and Games, and the numbers themselves came to be called surreal numbers: a system vast enough to contain every real number, every ordinal number, and infinitely many infinitesimal and infinite quantities besides, all constructed from nothing but the recursive idea of a game position and its possible moves. This is combinatorial game theory, and it is a genuinely different animal from the von Neumann and Nash tradition. Von Neumann and Nash games typically involve simultaneous choices, incomplete information about the other player's intentions, and payoffs that can require compromise or bluffing to navigate. Conway games are sequential, perfect-information, no-chance contests like Go, chess endings, or Nim, where the entire question is which player, moving optimally, forces a win. The two traditions share a name and a founding motivation, understanding strategic play mathematically, and very little else about their machinery. That a Cambridge mathematician found a new kind of number by staring hard enough at a Go endgame is, on its own terms, one of the stranger origin stories in modern mathematics.

Connections

Associated With

Algorithmic game theory, computing equilibria and analyzing the computational complexity of finding them, is a substantial modern subfield shared with applied and computational mathematics.

Source The Stanford Encyclopedia of Philosophy
Source MacTutor History of Mathematics Archive

Game theory shares its expected-value and optimization machinery with probability and statistics; mixed strategies are themselves probability distributions over pure strategies.

Source The Stanford Encyclopedia of Philosophy

Includes

Source Allan F. Gibbard curriculum vitae (University of Michigan)
Source Bishop-Cannings theorem (Wikipedia)
Source Bondareva-Shapley theorem - Wikipedia

Combinatorial game theory grew out of, and remains a distinct part of, the wider study of game theory that von Neumann and Nash founded; it does not itself originate the whole game-theory branch.

Source MacTutor History of Mathematics Archive
Source David Blackwell (Wikipedia)
Source Debreu's representation theorems (Wikipedia)
Source Wolfram MathWorld: Dictator Game
Source Duggan-Schwartz theorem (Wikipedia)
Source Gale-Shapley algorithm (Wikipedia)
Source Gibbard's theorem - Wikipedia
Source Purification theorem - Wikipedia
Source Chicken (game) (Wikipedia)
Source MacTutor History of Mathematics Archive
Source Nash, Non-Cooperative Games (1951)John Nash
Source von Neumann, Zur Theorie der Gesellschaftsspiele (1928)John von Neumann
Source Kuhn's theorem (Wikipedia)
Source Wikipedia: Lloyd Shapley
Source Mark Satterthwaite faculty profile (Kellogg School of Management)
Source Wolfram MathWorld: May's Theorem
Source McKelvey-Schofield chaos theorem, Wikipedia
Source Wikipedia: Melvin Dresher
Source von Neumann, Zur Theorie der Gesellschaftsspiele (1928)John von Neumann
Source Mixture-space theorem - Wikipedia
Source Nash, Non-Cooperative Games (1951)John Nash
Source Cooperative bargaining (Wikipedia)
Source Wikipedia: Olga Bondareva
Source Wikipedia: Prisoner's dilemma
Source Replicator equation (Wikipedia)
Source Nobel Prize Outreach: Robert J. Aumann Facts
Source Rubinstein bargaining model (Wikipedia)
Source Shapley value (Wikipedia)
Source Stag hunt (Wikipedia)
Source Tit for Tat (Wikipedia)
Source Vickrey-Clarke-Groves mechanism (Wikipedia)
Source Von Neumann-Morgenstern utility theorem (Wikipedia)
Source Zero-Sum Game (Wikipedia)

Long-Form Articles

In the Other Atlases

Is Discussed By

Also in Sport and Games Atlas: which discusses this subject.

Sources
1. Wikipedia: Game Theory
Wikimedia Foundation
  • Theory and methodology
    Unlike traditional econometric models that are descriptive (in the sense of predicting future outcomes based on historical data and statistical trends between variables) and optimisation algorithms (which assume static environments and generally address single-objective problems within predefined constraints), game theory is inherently dynamic and accounts for the strategic interactions among participants.
  • Lead section, pure or applied classification
    Game theory is the field of applied mathematics that models interactions between multiple agents as "games" of strategy between "players".
View the Source
2. The Stanford Encyclopedia of Philosophy
Center for the Study of Language and Information, Stanford University
  • Game Theory entry
    Game theory is the study of the ways in which interacting choices of economic agents produce outcomes with respect to the preferences (or utilities) of those agents, where the outcomes in question might have been intended by none of the agents.
  • Associated With: Probability and Statistics
  • Associated With: Applied and Computational Mathematics
View the Source
von Neumann and Morgenstern, Theory of Games and Economic Behavior (1944)
John von Neumann and Oskar Morgenstern, Princeton University Press, 1944
MacTutor History of Mathematics Archive
University of St Andrews, School of Mathematics and Statistics
  • Includes: Combinatorial Game Theory, https://mathshistory.st-andrews.ac.uk/Biographies/Conway/
  • Includes: John Conway, https://mathshistory.st-andrews.ac.uk/Biographies/Conway/
  • Associated With: John von Neumann, https://mathshistory.st-andrews.ac.uk/Biographies/Von_Neumann/
    a paper by Borel on the minimax property led him to develop ... ideas which culminated later in one of his most original creations, the theory of games
View the Source
von Neumann, Zur Theorie der Gesellschaftsspiele (1928)
John von Neumann, Mathematische Annalen, vol. 100, 1928
  • Includes: John von Neumann
  • Includes: Minimax Theorem
Nash, Non-Cooperative Games (1951)
John Nash, Annals of Mathematics, vol. 54, 1951
  • Includes: John Nash
  • Includes: Nash Equilibrium
Allan F. Gibbard curriculum vitae (University of Michigan)
Includes: Allan Gibbard, Publications
Quote, Includes: Allan Gibbard, Publications
Manipulation of Voting Schemes: A General Result
View the Source
Mark Satterthwaite faculty profile (Kellogg School of Management)
Includes: Mark Satterthwaite, Biography
Quote, Includes: Mark Satterthwaite, Biography
founding member of the Game Theory Society
View the Source
Debreu's representation theorems (Wikipedia)
Includes: Debreu's Theorems, Lead
Quote, Includes: Debreu's Theorems, Lead
In economics, the Debreu's theorems are preference representation theorems-statements about the representation of a preference ordering by a real-valued utility function.
View the Source
Duggan-Schwartz theorem (Wikipedia)
Includes: Duggan-Schwartz Theorem, Lead
Quote, Includes: Duggan-Schwartz Theorem, Lead
The Duggan-Schwartz theorem (named after John Duggan and Thomas Schwartz) is a result about voting systems designed to choose a nonempty set of winners from the preferences of certain individuals, where each individual ranks all candidates in order of preference.
View the Source
Von Neumann-Morgenstern utility theorem (Wikipedia)
Includes: Von Neumann-Morgenstern Utility Theorem, Lead
Quote, Includes: Von Neumann-Morgenstern Utility Theorem, Lead
In decision theory, the von Neumann-Morgenstern (VNM) utility theorem demonstrates that rational choice under uncertainty involves making decisions that take the form of maximizing the expected value of some cardinal utility function.
View the Source
Mixture-space theorem - Wikipedia
Includes: Mixture-Space Theorem, Lead
Quote, Includes: Mixture-Space Theorem, Lead
In microeconomic theory and decision theory, the Mixture-space theorem is a utility-representation theorem for preferences defined over general mixture spaces.
View the Source
McKelvey-Schofield chaos theorem, Wikipedia
Includes: McKelvey-Schofield Chaos Theorem, Lead
Quote, Includes: McKelvey-Schofield Chaos Theorem, Lead
The McKelvey-Schofield chaos theorem is a result in social choice theory.
View the Source
Vickrey-Clarke-Groves mechanism (Wikipedia)
Includes: Vickrey-Clarke-Groves Theorem, Article text
Quote, Includes: Vickrey-Clarke-Groves Theorem, Article text
In mechanism design, the Vickrey-Clarke-Groves (VCG) mechanism is a generic truthful mechanism for achieving a socially optimal solution whenever monetary transfers are available.
View the Source
Gale-Shapley algorithm (Wikipedia)
Includes: Gale-Shapley Theorem, Article text
Quote, Includes: Gale-Shapley Theorem, Article text
In mathematics, economics, and computer science, the Gale-Shapley algorithm (also known as the deferred acceptance algorithm, propose-and-reject algorithm, or Boston Pool algorithm) is an algorithm for finding a solution to the stable matching problem.
View the Source
Cooperative bargaining (Wikipedia)
Includes: Nash's Bargaining Theorem, Article text
Quote, Includes: Nash's Bargaining Theorem, Article text
Cooperative bargaining is a process in which two people decide how to share a surplus that they can jointly generate.
View the Source
Replicator equation (Wikipedia)
Includes: Replicator Equation, Lead sentence
Quote, Includes: Replicator Equation, Lead sentence
s a type of dynamical system used in evolutionary game theory to model how the frequency of strategies in a population changes ove
View the Source
Zero-Sum Game (Wikipedia)
Wikimedia FoundationIncludes: Zero-Sum Game, Lead sentence
Quote, Includes: Zero-Sum Game, Lead sentence
Zero-sum game is a mathematical representation in game theory and economic theory of a situation that involves two competing entit
View the Source
Wikipedia: Prisoner's dilemma
Includes: Prisoner's Dilemma, Lead sentence
Quote, Includes: Prisoner's Dilemma, Lead sentence
In game theory, the prisoner's dilemma is a thought experiment involving two rational agents, each of whom can either cooperate fo
View the Source
Chicken (game) (Wikipedia)
Includes: Hawk-Dove Game, Lead sentence
Quote, Includes: Hawk-Dove Game, Lead sentence
t game, is a model of conflict for two players in game theory.
View the Source
Bondareva-Shapley theorem - Wikipedia
Includes: Bondareva-Shapley Theorem, Lead sentenceView the Source
Purification theorem - Wikipedia
Includes: Harsanyi's Purification Theorem, Lead sentence
Quote, Includes: Harsanyi's Purification Theorem, Lead sentence
In game theory, the purification theorem was contributed by Nobel laureate John Harsanyi in 1973.
View the Source
Shapley value (Wikipedia)
Includes: Shapley's Theorem, Lead sentence
Quote, Includes: Shapley's Theorem, Lead sentence
In cooperative game theory, the Shapley value is a method (solution concept) for fairly distributing the total gains or costs amon
View the Source
Kuhn's theorem (Wikipedia)
Includes: Kuhn's Theorem, Lead sentence
Quote, Includes: Kuhn's Theorem, Lead sentence
In game theory, Kuhn's theorem is a foundational result in the analysis of extensive-form games, first formalized by American math
View the Source
Rubinstein bargaining model (Wikipedia)
Includes: Rubinstein Bargaining Model, Lead sentence
Quote, Includes: Rubinstein Bargaining Model, Lead sentence
ng model refers to a class of bargaining games in game theory featuring alternating offers between two players over an infinite ti
View the Source
Gibbard's theorem - Wikipedia
Includes: Gibbard's Theorem, Lead sentence
Quote, Includes: Gibbard's Theorem, Lead sentence
Gibbard's theorem is a key result in game theory showing that there is no universal non-dictatorial mechanism.
View the Source
Bishop-Cannings theorem (Wikipedia)
Includes: Bishop-Cannings Theorem, Lead sentenceView the Source
David Blackwell (Wikipedia)
Includes: David Blackwell, Lead paragraph [in-branch]
Quote, Includes: David Blackwell, Lead paragraph [in-branch]
game theory
View the Source
Wikipedia: Melvin Dresher
Includes: Melvin Dresher, Lead
Quote, Includes: Melvin Dresher, Lead
notable for developing, alongside Merrill Flood, the game theoretical model of cooperation and conflict known as the Prisoner's dilemma
View the Source
Wikipedia: Olga Bondareva
Includes: Olga Bondareva, Lead
Quote, Includes: Olga Bondareva, Lead
especially game theory
View the Source
Wikipedia: Lloyd Shapley
Includes: Lloyd Shapley, Lead
Quote, Includes: Lloyd Shapley, Lead
especially game theory
View the Source
Stag hunt (Wikipedia)
Includes: Stag Hunt, Lead paragraph
Quote, Includes: Stag Hunt, Lead paragraph
In game theory, the stag hunt (also referred to as the assurance game, trust dilemma or common interest game) describes a situation or game where participants would be better off cooperating to achieve a more ambitious goal (hunting a stag together, which succeeds), but can choose a safer option (hunting a hare on one's own) that protects them from a bad outcome (hunting a stag alone, which fails, while the other hunts a hare).
View the Source
Tit for Tat (Wikipedia)
Includes: Tit for Tat, Lead paragraph
Quote, Includes: Tit for Tat, Lead paragraph
It is also a highly effective strategy in game theory.
View the Source
Wolfram MathWorld: Dictator Game
Wolfram MathWorldIncludes: Dictator Game, Subject classifications
Quote, Includes: Dictator Game, Subject classifications
Applied Mathematics Game Theory
View the Source
Wolfram MathWorld: May's Theorem
Wolfram MathWorldIncludes: May's Theorem, Subject classifications
Quote, Includes: May's Theorem, Subject classifications
Applied Mathematics Game Theory
View the Source
Nobel Prize Outreach: Robert J. Aumann Facts
Includes: Robert Aumann, Work
Quote, Includes: Robert Aumann, Work
Robert Aumann was awarded the Prize in Economic Sciences for his theory of repeated games, which enhances our understanding of the prerequisites for cooperation.
View the Source
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