Zero-sum game occurs when one person's gain equals another's loss. Chess, poker, and matching pennies are classic zero-sum examples. Financial markets involve millions of participants in zero-sum transactions
Sample space consists of all possible outcomes of an experiment. Events can be represented as unions of disjoint events. Additivity axiom applies to set operations
Minimax minimizes maximum possible loss in worst-case scenarios. Maximin maximizes minimum gain in non-zero-sum games. Minimax value is lowest possible outcome without knowing others' actions
Strategy is a complete algorithm for playing a game, specifying actions for all possible situations. Strategy profile includes one strategy for each player in a game. Strategy set defines available actions for players, finite or infinite
Zero-sum games occur when one player's gain equals another's loss. Cake cutting, poker, chess, and sports are typical examples. Futures contracts and options are also zero-sum games
Bargaining is negotiation between buyer and seller for goods or services. Common in poorer countries and street markets worldwide. Can include credit arrangements and bulk purchasing. Growth in GDP reduces ill-effects of bargaining