Common Terms
Some of the common terminologies used in game theory are as follows:
1. Group - A bunch of 2 or more Players between which the game has to be played
2. Player - A a Participant in the game who is practically a "Decision Maker" who somehow affect the outcome of the game.
3. Interaction - Interaction refers to the existance of interdependance between all players.
4. Strategic Move/Decision - is Decision in which the player accounts for his Interdependance upon
other players.
5. Payoffs - is the Benefit obtained as a result of a particular Strategy.
Assumptions
1. A very crucial assumption in most games is that "Each Player is Rational" and therefore makes the "best possible choice."
2. Each Player knows that all other Players are also rational and that they know that he is rational too.
