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1、Chapter1ABriefHistoryofGameTheoryWhyStudyGames?Thefieldknownas“gametheory”wasinventedinthelastcenturybymathemati-ciansandeconomistsasatooltoanalyzebotheconomiccompetitionandpoliticalconflicts.Thefundamentalinsightofgametheorywastoapplythelogicofgames—inwhichplayerscompeteagainsteachotherus
2、ingstrategy,tactics,andeffort—toeventsinreallife.Mostgamesplayedforentertainmentandrecreationinvolvetwopersons(ortwoteams)competingdirectlyagainsteachother.Checkers,chess,football,judo,andsquash,andthousandsofotherformalizedcontestsareexamplesofgamesinwhichtherearetwoplayersorteams.Mostoft
3、hesegameshaveonlyonewinnerafterplayed.Originally,theoristsfocusedonstrictlycompetitiveortwo-personzero-sumgames.Inthesegames,cooperationispointlesssincethegoalsoftheplayersarenecessarilyatodds;ifoneplayerprefersacertainoutcome,theotherplayerwillnotpreferit.©2010byTaylorandFrancisGroup,LLC2
4、AppliedGameTheoryandStrategicBehaviorFurthermore,thesettingforthegameistypicallyaone-timecompetition,inwhichtheactionsofplayersinthepastdonotaffectthecurrentcompetitionatall.Thisconstructionofagameworksquitewellinmanygamesituations,andisapow-erfultoolforthedevelopmentofmuchofmoderngametheo
5、ry.However,itisunsat-isfactoryasamodelforthemajorityofeconomic,business,orpoliticalapplications.Inreallife,thereareusuallymorethantwopartiesinvolvedinamarket,andthecontestoropportunitytoexecutesometypeofstrategicdecisionhappensrepeat-edly.Thus,broadertypesofgameshavebeencodifiedingametheor
6、y,andwillbedis-cussedinthisbook.RapidDiscoveriesintheTwentiethCenturyDespitetheshortcomingsofsimpletwo-personzero-sumgames,thetheoriststhatbeganstudyingthistypeofcontestonlyaboutahalfcenturyagohaveproducedanumberofimportantdiscoveries.Thesedevelopmentshavedramaticallybroadenedtheapplicatio
7、nofgametheorytosituationsinreallife.KeyConceptualDevelopmentsinEarlyYearsAshorthistoryofthedevelopmentofgametheorywouldincludethefollowingsig-nificantdevelopmentsinearlyyears:1•Theextensive(ortree)formofagame,introducedbyJohnVonNeumannin1928,whichpresentsasyst
