Human are social by nature. Human are particularly adapt to utilizing system of communication such as language for self expression and exchange ideas. Social structure of human consists of cooperating and competing groups. Human are also inborn appreciation for enjoyment, beauty and aesthetic which combined with a human desire for self expression, has led to cultural innovations such as art, literature and music.
Game theory deals with the behavior of individuals in a social environment where the actions of each individual affect the others. Game theory analyzes the considerations that rational participants entertain when deciding on their moves, and how such considerations affect the moves they choose to make.
The participants may be, for example, individual employees on the job, commercial firms in the economic market, or nations in the international arena. In order not to restrict the context of the study ab initio, such individuals are habitually referred to as “players” and the interaction between them is called a “game.”
In everyday usage, the word “game” typically refers to children’s games or sporting and social games such as football, chess or Monopoly. We derive direct enjoyment and entertainment value from the game and sometimes other added values, too. In game theory, the term “game” is assigned a more general meaning, to describe interactive encounters between several participants.
The borrowed use of the game concept in this context is based on the fact that every game has its predetermined rules. These rules define a permanent and built-in connection between causes and effects. In modeling a social situation in game theory, one seeks to single out such built-in connections from the vast plethora of the details of the event. As in a game in the everyday meaning of the word, the motivating forces are the actions or the strategies that participants can employ, and the results are the effects of the action of each of the participating players on each and every one of them.
In reality, this influence is of course multifaceted and highly diversified: it may take the form of the material resources at the participant’s disposal, her emotional sense, her social status, what she expects of herself and what others expect from her, and so forth.