7.3.1. Player, Coalition, Competition
In game theory, the concepts of player, coalition, and competition are fundamental to understanding and analyzing strategic interactions. Here’s a brief explanation of each term:
(1) Player: A player is an individual or entity that is involved in a strategic interaction within a game. Players can be individuals, businesses, countries, or any decision-making entities that have a set of possible actions or strategies from which to choose. Each player’s goal is typically to maximize their own utility or payoff, taking into account the choices of others.
(2) Coalition: A coalition is a group of players who join together and coordinate their strategies to achieve common objectives. In cooperative game theory, players can form coalitions to enhance their collective outcomes. The formation and stability of coalitions are crucial aspects in understanding how players may collaborate or compete within a game. The concept is often used in the context of cooperative games, where players can benefit from working together.
(3) Competition: Competition in game theory refers to the rivalry or conflict among players as they pursue their individual goals. Games can involve varying degrees of competition, ranging from non-cooperative games where players act independently and competitively to cooperative games where players may form alliances to enhance their outcomes. Understanding the nature and intensity of competition is essential for predicting player behavior and outcomes in strategic interactions.
These concepts are integral to the analysis of different types of games, helping to model and predict the behavior of decision-makers in various situations.