Jaron CollisCore ConceptDeveloped by John von Neumann Views the source of uncertainty as the intentions of others Attempts to create non-zero sum games where no-one wins, no-one looses, but all parties benefitNash EquilibriumRationalityStrategiesNash EquilibriumA stable outcome that is less than optimal for all parties e.g. Spectrum auctions, designed to prevent destructive competitive biddingRationalityUses the classical model of rationality, people will make the best decisions to serve their best interests. Game theory has problems when people behave irrationally (e.g. make mistakes) StrategiesThe fundamentals of game theoryConsensusConsensusAn example strategy: when assessing a market price look for narrow trading bands, this indicates a consensus viewfalsebusiness12002-06-18T00:37:58.197+01:002003-06-25T23:17:38.960+01:00