Editing Competition (section)

==Game theory==
{{main|Game theory}}
Game theory is "the study of [[mathematical model]]s of conflict and cooperation between intelligent rational decision-makers."<ref name="Myerson">{{Cite book |last=Myerson |first=Roger B. |title=Game Theory: Analysis of Conflict |publisher=Harvard University Press |year=1997 |isbn=9780674341166}} p.&nbsp;[https://books.google.com/books?id=E8WQFRCsNr0C&pg=PA1 1]. Chapter-preview links, pp. [https://books.google.com/books?id=E8WQFRCsNr0C&pg=PR7 vii–xi].</ref> Game theory is mainly used in [[economics]], [[political science]], and [[psychology]], as well as [[logic]], [[computer science]], [[biology]] and [[poker]].<ref>{{cite news |author=Chabris |first=Christopher |date=26 July 2013 |title=The Science of Winning Poker |work=[[The Wall Street Journal]] |url=https://www.wsj.com/articles/SB10001424127887323610704578625812355516182 |url-access=subscription |access-date=11 September 2022}}</ref> Originally, it mainly addressed [[zero-sum game]]s, in which one person's gains result in losses for the other participants.

Game theory is a major method used in [[mathematical economics]] and business for [[Economic model|modeling]] competing behaviors of interacting [[Agent (economics)|agent]]s.<ref name="r1" /> Applications include a wide array of economic phenomena and approaches, such as [[auction]]s, [[bargaining]], [[mergers & acquisitions]] pricing,<ref name="GT-A-E-00" /> [[fair division]], [[Duopoly|duopolies]], [[Oligopoly|oligopolies]], [[social network]] formation, [[agent-based computational economics]],<ref name="r2" /> [[general equilibrium]], [[mechanism design]],<ref name="r3" /> and [[voting system]]s;<ref name="r4" /> and across such broad areas as [[experimental economics]],<ref name="r5" /> [[Behavioral game theory|behavioral economics]],<ref name="r6" /> [[information economics]],<ref name="r7" /> [[industrial organization]],<ref name="r8" /> and [[political economy]].<ref name="r9" /><ref name="r10" />

This research usually focuses on particular sets of strategies known as [[Solution concept|"solution concepts" or "equilibria"]]. A common assumption is that players act rationally. In non-cooperative games, the most famous of these is the [[Nash equilibrium]]. A set of strategies is a Nash equilibrium if each represents a best response to the other strategies. If all the players are playing the strategies in a Nash equilibrium, they have no unilateral incentive to deviate, since their strategy is the best they can do given what others are doing.<ref name="GT-F-R-09">[http://www.insead.edu/facultyresearch/research/doc.cfm?did=46503 Game-theoretic model to examine the two tradeoffs in the acquisition of information for a careful balancing act] {{Webarchive|url=https://web.archive.org/web/20130524231021/http://www.insead.edu/facultyresearch/research/doc.cfm?did=46503|date=2013-05-24}} Research paper [[INSEAD]]</ref><ref name="GT-F-R-10">{{Cite news |last1=Chevalier-Roignant |first1=Benoît |last2=Trigeorgis |first2=Lenos |date=15 February 2012 |title=Options Games: Balancing the trade-off between flexibility and commitment |work=European Financial Review |url=http://www.europeanfinancialreview.com/?p=4645 |url-status=dead |access-date=3 January 2013 |archive-url=https://web.archive.org/web/20130620053305/http://www.europeanfinancialreview.com/?p=4645 |archive-date=20 June 2013}}</ref>