Glamor Economics

Chapter 74

Chapter 11 How to Achieve Multi-Win in Interactive Decision-Making—Game and Equilibrium
Section 1 Finding the Best Strategy for Wisdom Confrontation—Game

Game theory, also known as game theory, is a theory that uses rigorous mathematical models to study optimal decision-making under conditions of conflict and confrontation.As a formal discipline, game theory was formed and developed in the 20s.It was originally a branch of mathematical operations research, which is used to deal with the optimal behavior of strategic game participants and the equilibrium of the decision outcome, or to help rational players find the best strategy they should adopt.Through games, each player strives for its maximum benefit under certain conditions.

1928 von ?Neumann proved the basic principles of game theory, thus proclaiming the official birth of game theory. In 1944, Feng?The epoch-making masterpiece "Game Theory and Economic Behavior" co-authored by Neumann and Morgenstern extended the two-person game to the n-person game structure and applied the game theory system to the economic field, thus laying the foundation and theoretical system of this discipline.

According to Robert, who won the Nobel Prize in Economics for his contribution to game theory in 2005?According to Professor Auman, game theory is the theory of studying interactive decision-making.The so-called interactive decision-making means that the decisions of the actors are mutually influential. Everyone must take other people's decisions into their own decision-making considerations when making decisions. Of course, they also need to take other people's considerations into consideration... Make decisions under such iterative considerations and choose the strategy that is most beneficial to you.

In layman's terms, game theory is that some individuals, teams or other organizations, facing certain environmental conditions and under the constraints of certain rules, rely on the information they have, simultaneously or successively, one or more times, to make decisions about the behaviors that they are allowed to choose. The process of selecting and implementing strategies or strategies, and obtaining corresponding results or benefits from them.

A complete game should include five aspects: first, the participants of the game, that is, individuals or organizations that independently make decisions and bear the consequences in the game process; Helpful intelligence information; third, the collection of all behaviors or strategies that the players can choose; fourth, the order of the game, that is, the order in which the players make strategic choices.For example, "If people don't attack me, I won't attack others; if people attack me, I will attack others" is a kind of strategy.Here, "committing" and "not committing" are two different actions.The strategy stipulates when to choose "offence" and when to choose "not to commit"; fifth, the profit of the game party, that is, the income and loss of each game party after making a decision-making choice.

To put it simply, a game is the competition between two opposing forces, such as the game between workers and capitalists, or the competition between different sellers of the same commodity.

In Liuzhou, there was a boy named Ou Ji who was a boy who collected firewood and herded cattle.One day, when Qu Ji was grazing and collecting firewood, two robbers kidnapped him, tied his hands behind his back, gagged his mouth with a cloth, and took him for more than 40 miles to sell in the market. he.Ou Ji pretended to be trembling from fear and kept crying like an ordinary child.The robber thought he was easy to deal with, so they drank together and got drunk after a while.One robber went to negotiate a deal; the other lay down with his knife in the road.The child secretly observed that he was asleep, put the rope that bound his hands against the knife edge, and scraped vigorously up and down, until the rope was finally cut, he took the knife to kill the robber, and fled.Before Ou Ji had time to run away, the robber who had gone to negotiate a deal came back, caught him, and wanted to kill him.Ou Ji hurriedly said: "Being the servant of two people is better than being the servant of one person? He treats me badly. If you can really save my life and treat me well, you can do whatever you want.

The robber thought about it for a long time, and thought: "Instead of killing the child, it is better to sell him; instead of selling the money to two people, it is better for me to monopolize it."It's a good thing the kid killed that guy, so good! "So, he hid the body of another robber, took the child to the market, and tied the district more and more tightly. In the middle of the night, while the robber was asleep, he turned over by himself, and let the tied rope approach the fire to burn it. , picked up the knife and killed the robber who was about to sell him, and then cried loudly. The whole market was shocked. The child said: "I am a child of the district family, and I should not be someone else's servant.Two robbers caught me, luckily I killed them all.I hope to report (this incident) to the government. "The little official in charge of the market reported to the state officials, and the state officials reported to the superior official Taifu. The Taifu summoned the child and thought he was young and honest. The governor Yan Zheng felt that he was different, so he was retained as a small official in the yamen. He refused. The governor sent some clothes to the district and asked the officials to escort him back to the village. Those who robbed and kidnapped him in the village did not dare to look him in the eye or pass his house, saying: "This child is worse than Qin Wuyang." Two years younger, but killed two robbers, how can he get close to him? "

There is a game between Ou Ji and the robbers. In this game, Ou Ji is undoubtedly in a disadvantaged position, because he himself is a small and weak shepherd boy with no social experience, while the other party is a villager with rich experience. And this robber came prepared, with a shining steel knife in his hand, but he did not have any weapons.If you only look at the beginning of the story, perhaps few people think that the final winner is District Yoshi.But this is what makes the game so unusual. Ou Ji has no weapons, no experience, and no strength, but he has brains, wisdom, and strategies. This is the key to his ultimate victory over the enemy.

Although Ou Ji didn't know the meaning of the word "game" at the time, he finally escaped from the clutches of the robbers by relying on his game wisdom.Game theory involves a wide range of "games": the interaction of interpersonal relationships, the coordination of husband and wife relationships, the competition for workplace relationships, the competition for business relationships, the investment of stock market funds, and so on.Where there are people, there is competition, and where there is competition, there is gaming, and gaming is everywhere in society.Life is full of games. If you want to be a strong player in modern society, you must know how to use games, and win the best chance for yourself in competitions, big or small.

[links to related words]

Game theory is that some individuals, teams or other organizations, in the face of certain environmental conditions, under the constraints of certain rules, rely on the information they have, simultaneously or successively, one or more times, to choose the behavior or strategy that they are allowed to choose. and implement them to obtain corresponding results or benefits.

Cooperative game and non-cooperative game The difference between cooperative game and non-cooperative game is whether there is a binding agreement between the parties interacting with each other. If there is, it is a cooperative game. If not, it is a non-cooperative game.

The complete information game and the incomplete information game are called the complete information game if the participants of the complete information game and the incomplete information game fully understand the strategy space of all participants and the payment under the strategy combination; otherwise, it is called the incomplete information game.

Static game and dynamic game Static game refers to that in the game, the participants choose at the same time or although they do not choose at the same time, the latter actor does not know what specific action the first actor has taken; There is a sequence, and the later mover can observe the action chosen by the first mover.Popular understanding: "Prisoner's Dilemma" is a simultaneous decision-making, which belongs to a static game; while chess and card games and other decisions or actions have a sequence, which belongs to a dynamic game.

(End of this chapter)