Game theory is the study of the ways in which interacting choices of economic agents produce outcomes with respect to the preferences (or utilities) of those agents
https://plato.stanford.edu/entries/game-theory/An economic agent is, by definition, an entity with preferences. Game theorists, like economists and philosophers studying rational decision-making, describe these by means of an abstract concept called utility.
Game theory is the study of mathematical models of strategic interactions among rational agents
https://en.wikipedia.org/wiki/Game_theoryA rational agent or rational being is a person or entity that always aims to perform optimal actions based on given premises and information.
Thank you for reply.I believe the "agent" is anything you want it to be in game theory, so long as it is acting. This is why game theory has a very wide range of applicability. — Metaphysician Undercover
Economists and others who interpret game theory in terms of RPT should not think of game theory as in any way an empirical account of the motivations of some flesh-and-blood actors (such as actual people).
Some other theorists understand the point of game theory differently. They view game theory as providing an explanatory account of actual human strategic reasoning processes.
An economically rational player is one who can:
1. assess outcomes, in the sense of rank-ordering them with respect to their contributions to her welfare
2. calculate paths to outcomes, in the sense of recognizing which sequences of actions are probabilistically associated with which outcomes
3. select actions from sets of alternatives (which we’ll describe as ‘choosing’ actions) that yield her most-preferred outcomes, given the actions of the other players.
An entity is usefully modeled as an economically rational agent to the extent that it has alternatives, and chooses from amongst these in a way that is motivated, at least more often than not, by what seems best for its purposes.
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