4. What is game theory?
Game Theory was firstly explored by a French mathematician named Borel in 1921. Emile Borel published several papers on the theory of games. He used poker as an example and addressed the problem of second-guessing the opponent in a game. He imagined using game theory in economic and military applications and his goal was to determine, whether a best strategy for a given game exists and find that strategy. However, he did not develop his idea very far. Due to that, most historians give the credit for improving game theory to John Von Neuman(1903), who published his first paper on game theory in 1928, seven years after Borel.
Game theory is a method originated from the mathematical sciences in which is used in competitive or cooperative position to find optimal choices that will lead to desired outcome. In every game at least two players will be involved in who will gait to maximize their own benefits with regard to opponent’s decision. In fact, it is becoming popular and interesting in some fields such as economics, sociology, political and management sciences. In the mentioned fields game theory can be used to anticipate the best result.