Introduction to Game Theory/Strategic games

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Like most sciences, Game theory is an attempt to model the world in a way we can understand. The simplest way game theorists can model the world is in a strategic game. Strategic games have three components: a set of players, for each player a set of strategies, and a preference over all strategies. The players in the game are exactly the players in the strategic model. Each player also needs a set of strategies, or what moves to take during the course of the game. By giving each player a strategy, we get the outcome of the game. Each player needs a preference for every possible outcome. In mathematical notation:

Players: {1,2,N}

Strategies: {A1,A2,AN}

Preferences: {a1,a2,an},a1A1,a2A2...