Editing Game theory (section)

=== Key Concepts and Theorems ===

==== Nash Equilibrium ====
The '''Nash Equilibrium''' is a central concept in game theory, named after John Nash. It represents a situation where each player's strategy is optimal, considering the strategies of the other players. No player can improve their payoff by unilaterally changing their strategy. Nash Equilibrium applies to a wide range of games, both cooperative and non-cooperative.

==== Dominant Strategy ====
A '''dominant strategy''' is one that is the best for a player, regardless of the strategies chosen by other players. If a player has a dominant strategy, they will always choose it, as it provides the highest payoff in any situation.

==== Pareto Efficiency ====
'''Pareto Efficiency''' (or Pareto Optimality) is a state where it is impossible to make any player better off without making at least one player worse off. It represents an allocation of resources where no further mutual gains are possible. Pareto efficiency is often used in economics and welfare analysis to evaluate the optimality of different distributions.

==== Minimax Theorem ====
In zero-sum games, the '''Minimax Theorem''', introduced by John von Neumann, states that players can minimize their maximum potential losses, leading to equilibrium. The theorem provides a strategy for players to ensure the best possible outcome in adversarial situations.