Question
The key principles of game theory include strategic behavior, interdependence, and the concept of equilibrium. Strategic behavior refers to the decision-making process where a person considers the potential actions and reactions of others. Interdependence is the principle that the outcome for a player depends not only on their own decisions but also on the decisions of others. The concept of equilibrium refers to a state in which no player has an incentive to change their strategy, given the strategies of the other players.
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The authors also use entertainment as a way to get their points across. These stories are presented in the form of "tales," and one of the most memorable ones is called "Pick a Number." Readers are challenged to guess a number between 1 and 100 for five straight times to find the correct number that was chosen by them. The illustration concludes that this strategy is a good one, because the number setter and the searcher both know and understand the concepts behind finding the perfect information in game theory. That simply means "I know what you are thinking, and you know what I am thinking."
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