The study of mathematical models of strategic interaction among rational agents.

An agent that always acts in its own self-interest to maximize its payoff.

A situation where the outcome of an agent's actions depends on the actions of other agents.

The outcome or reward received by an agent as a result of their actions and the actions of others. Often represented numerically.

A formal representation of a strategic interaction, including players, actions, and payoffs.

An individual or entity making decisions within a game.

A complete plan of action for a player, specifying what action to take in every possible situation.

A representation of a game using a matrix showing players, strategies, and payoffs.

A representation of a game using a tree diagram showing the sequence of actions and payoffs.

A game where one player's gain is exactly equal to the other player's loss.

A game where the sum of the payoffs to all players is not zero. Both players can gain or lose simultaneously.

A set of strategies, one for each player, such that no player can improve their payoff by unilaterally changing their strategy, given the strategies of the other players.

A strategy that is always the best choice for a player, regardless of what the other players do.

A strategy that is always worse than another strategy for a player, regardless of what the other players do.

A classic game theory example illustrating the conflict between individual rationality and group rationality. Often leads to a suboptimal outcome for all players.

Represent the different actions available to players at each decision node.

Represent decision points for players in an extensive form game.

A strategy where a player chooses a single action with certainty.

A strategy where a player chooses actions probabilistically.

All players know the history of the game and the actions taken by all other players.

At least one player is unaware of some actions taken by other players.

Players choose their actions at the same time, without knowing the other players' choices.

Players take turns making choices, with later players having knowledge of earlier players' actions.

A method for solving sequential games by working backwards from the end of the game to determine optimal strategies.

A Nash equilibrium where the strategies are a Nash equilibrium in every subgame of the larger game.