Game theory is a study of strategic decision making. More formally, it is "the study of mathematical models of conflict and cooperation between intelligent rational agents". Modern game theory was developed by the great mathematician John von Neumann in the mid-1940's. His goal was to understand the general logic of strategic interaction, from military battles to price wars. Von Neumann, working with the economist Oscar Morgenstern, established a general way to represent games mathematically and offered a systematic treatment of games in which the players' interests were diametrically opposed. Games of this sort — zero-sum games — are common in sporting events and parlor games. |

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