文本描述
1913 - E. Zermelo provides the first theorem of game theory; asserts that chess is strictly determined
1928 - John von Neumann proves the minimax theorem
1944 - John von Neumann & Oskar Morgenstern write "Theory of Games and Economic Behavior”
1950-1953 - John Nash describes Nash equilibrium
Assumptions:
humans are rational beings
humans always seek the best alternative in a set of possible choices
Why assume rationality?
narrow down the range of possibilities
predictability
Utility Theory based on:
rationality
maximization of utility
may not be a linear function of income or wealth
It is a quantification of a person's preferences with respect to certain objects.
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