Editing Game Theory (section)

== <span style="color: #FFFFFF;">Understanding</span> ==
Game theory shifts the focus from "what is the best for me?" to "what is the best for me, ''given'' what you are likely to do?"

'''The Nash Equilibrium''': The most important concept in the field. John Nash proved that in any game with a finite number of players and strategies, there exists at least one equilibrium. In this state, the players are in a "stalemate" where no one wants to move first. This doesn't mean the outcome is ''good'' (as seen in the Prisoner's Dilemma), only that it is stable.

'''Cooperation vs. Defection''': Game theory explains why cooperation is hard but possible.
* '''One-Shot Games''': Often lead to defection (cheating) because there is no penalty.
* '''Iterated Games''': If players interact repeatedly, they can use "Tit-for-Tat" strategies—cooperating initially and then mimicking the other player's previous move. This builds trust and punishes cheating.

'''Common Archetypes''':
* '''The Stag Hunt''': A game of coordination. We both catch the deer if we work together; if one of us chases a rabbit, we both go home with less.
* '''Chicken''': A game of brinkmanship. If neither swerves, we both crash. If one swerves, they are the "chicken."
* '''Matching Pennies''': A zero-sum game with no stable pure strategy, requiring mixed strategies (unpredictability).
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