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Prisoner's Dilemma
Fundamental game in game theory illustrating how two rational agents pursuing their individual interests can lead to a collective suboptimal outcome, even when cooperation would be mutually beneficial.
Pareto Equilibrium
State of resource allocation where it is impossible to improve the situation of one agent without worsening that of at least one other agent, representing a notion of collective efficiency.
Bayesian Game
Game model where players have incomplete information about the characteristics or types of other players, using conditional probabilities to represent their beliefs.
Minimax Theorem
Fundamental principle of game theory establishing that in any zero-sum game with complete information, there exists a game value equal to player 1's maximin and player 2's minimax.
Subgame Perfect Equilibrium
Refined equilibrium concept for sequential games, requiring that players' strategies constitute a Nash equilibrium in each subgame of the complete game.
Evolutionary Game
Theoretical framework applying game theory concepts to evolutionary dynamics, where strategies spread according to their reproductive success rather than rational choice.
Bounded Rationality
Behavior model recognizing that agents have finite cognitive capabilities, imperfect information, and time constraints, affecting their optimal decision-making processes.
Incentive Mechanism
System of rules designed to align the private interests of agents with a collective objective, using reward and penalty structures to guide desired behaviors.
Saddle point
Solution in a zero-sum game where the maximin player and the minimax player obtain the same value, simultaneously representing the minimum in a row and the maximum in a column of the payoff matrix.
Coalition game
Type of cooperative game where players can form alliances or coalitions to improve their collective payoffs, with mechanisms for distributing benefits among members.
Stochastic game
Extension of repeated games where system states evolve according to transition probabilities, combining game theory with Markov decision processes.
Stackelberg equilibrium
Equilibrium concept in hierarchical games where a leader makes a decision first, and followers react optimally to this decision, creating a strategic informational asymmetry.