Game theory breakthrough reshapes industries with new equilibrium strategies
The article explores a game where a big player interacts with many small players over time. In one version, everyone knows the big player's strategy. In this case, the big player's rewards are limited to what they could get in a single round. In another version, the small players aren't sure about the big player's strategy. Here, the big player can earn more over time by changing their actions strategically. The researchers found that the big player can maximize their rewards by using a specific type of strategy that depends on what the small players believe. This research has applications in areas like business and economics.