For more information about game theory, What is Game Theory .

Game theory: also known as strategy theory and competition theory, it is used to analyze the situation of competition. In competition and struggle where there is a conflict of interest, the outcome of the competition depends not only on the choices, decisions and opportunities of one participant, but also on the choices of competitors or other participants.

Since the outcome of the competition depends on the choices of all players, each player attempts to determine the best course of action for the others. Game theory is the discipline that has mathematical methods to analyze forms of struggle, also known as conflict analysis. Since the Nobel Prize in Economics was awarded to three experts in game theory in 1994, game theory has been widely disseminated around the world.

This book is the representative work of von Neumann, the "father of game theory", which covers all the theories and methods of game theory except evolutionary games so far, and represents a high-level level of game theory development.

The book "Game Theory" not only contains a detailed explanation of the mathematical theory of games, but also contains the application and practice of the theory in various aspects. The book uses rich and detailed cases to introduce classic game theories such as zero-sum games, three-player games, mixed strategies, and prisoner's dilemmas.

How do you find the right partner in an unpredictable situation? How to reasonably distribute benefits to achieve a balance among all parties? How do you find out what your opponent is trying to do? "Game Theory" will lead readers into the game of the game and start a special "game" journey.

About author:John von Neumann, a Hungarian-American mathematician, computer scientist, and physicist, was one of the most brilliant scientific all-rounders of the 20th century. After receiving his doctorate in 1926, he taught at the University of Berlin and then the University of Hamburg, and in 1930 he left for the United States, where he became a tenured professor at the Institute for Advanced Study in Princeton before the age of 30.

During World War II, he served as a consultant in the development of the first atomic bomb and was also involved in the development of electronic computers. Because of his outstanding contributions to computer design, von Neumann is known as the "father of computers".

As one of the most important mathematicians of the 20th century, von Neumann proved the basic principles of game theory in 1928, thus announcing the birth of game theory. Sixteen years later, von Neumann co-authored Game Theory and Economic Behavior with Morgenstern, extending the application of game theory to the field of economics, which made him the founder of mathematical economics.

You will gain: understand what game theory is through cases in everyday life, and arm yourself with knowledge of game theory.

Learn the theories and ways of thinking of game theory, see the essence through phenomena, and understand the pattern of affairs faster.

Use game theory methods to grasp the first-mover advantage, turn passive into active, and be invincible in the competition.

The book I read some time ago is quite interesting to look at the other way around.

Game theory is a kind of thinking, a way of thinking about a game situation. Game theory is not a conspiracy, which is unsustainable (can only be used once), whereas game theory can be used continuously.

For example: the prisoner's dilemma, Pareto improvement, overwhelming strategy, etc., some of them feel more difficult to understand, and some of them are in life, and they are not recognized from this perspective.

For example: |Cooperation vs. betrayal, single game vs. repetitive game.

Examples of tourist attractions:

Everyone knows that the food in tourist attractions is very bad, why, because the book is a single game for this scene. Tourists don't spend a second time, so the boss thinks about making as much money as he can this time.

And among the tourist attractions, the quality of McDonald's & KFC is still very stable, why? Because he is facing you with a brand, although this store only eats 1 time, other stores still have to continue to do business and can't mess around, so this is a repeat game situation.

The quality of meals at popular tourist attractions has improved in recent years, why?

Think: In other words, credit is the key to winning repeat customers.

So here comes the topic, how to make others believe in your promises? Even if you gamble many times, how can you have the trust of others?

Whether it is credible or not depends on the pattern of interests after the fact. Your promise can only be trusted if the "pre-optimal" and "ex-post optimal" coincide.

These methods can ensure that the "ex-ante optimal" is consistent with the "ex-post optimum".

Method 1: Give others the power to punish you.

The most common is the "breach of contract clause".

For love, the most credible "promise" is to get married. Because marriage has legal effect, divorce requires the division of property.

Method 2: Take the initiative to cancel your "betrayal option".

In the past, when I got married, I invited relatives and friends to make a special event, and all social relations knew that this person was married, which was to take the initiative to cancel their choice. (Modern society is so mobile that it doesn't work anymore).

What if you don't get married? In the circle of friends and colleagues, the relationship is open, which is also the main pickpocket to cancel his choice.

Method 3: Prestige.

Prestige needs to be built up slowly, or someone else will endorse you. Emotional banks trust banks to save more money.

It makes sense, and it needs to be savored and used.

Game theory is a theory or method that fully considers all possible action plans of all parties to the game from the perspective of researchers, and uses mathematical methods to find the most reasonable action plan.

Since its main tool is mathematics, it is strictly a mathematical theory or mathematical method.

Von Neumann and Oskar Morgenstern were the first to systematically and formalize the study of game theory.

John Nash proposed the concept of Nash equilibrium, he believed that there is an equilibrium point in the game, and successfully proved the existence of this point using the immobility theorem, which laid the foundation for the generalization of game theory.

What is Nash equilibrium? It refers to a special situation that everyone in the game will face, that is, when the opponent does not change his strategy, his current strategy is the optimal choice, and if the participant changes his current strategy, his interests will be damaged.

As long as the participants remain rational, they will not be tempted to change their strategy at the Nash equilibrium.

He mainly applies economics, evolutionary game theory, behavioral ecology, etc.

As an important branch of applied mathematics, game theory is also applied to linear programming, statistics, and probability theory.

In 1994 and 1996, a number of economists engaged in the research and application of game theory, represented by John Nash, successfully won the Nobel Prize in Economics for their outstanding contributions to the field of economics.

Before game theory was applied to the economic field, the idea of traditional economic analysis was relatively narrow, but the introduction of game theory clearly presented the dialectical relationship between economic agents, which made the analysis of economics have new ideas. This is not only very close to the real market competition, but also lays the foundation for modern microeconomics and macroeconomics.

The foundation of game theory is based on numerous real-life gaming cases. There are five main aspects that a game needs to have:Players, strategies, gains and losses, order, balance

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Those who know others are wise, and those who know themselves are clear; The winner is strong, and the self-winner is strong; The small winner is the skill, and the big winner is virtuous. Bo: See the whole picture.

Yi: A game of chess.

Plan before you actGambling can be both cooperative and cooperative.

If you are interested, you may wish to have fun.

The game is that you have me, I have you. As a result of the direct interaction, each participant in the game benefits not only on their own strategy, but also on the strategies of the other participants, and the heart of the game lies in:Rational empathy based on holistic thinking, use the benefits of others to speculate on the strategies of others, so as to choose the strategy that is most beneficial to yourself.

If the other party is more willing to cooperate with you because of your stupidity in the eyes of the other party, why not?

Don't pursue success in a fully competitive market, the lower the threshold, the more adequate it is.

The market is in, and the opponent is in.

Plan and move. Bo + Yi = Go, by the art of the way.