Game Theory Overview
Lesson summary:
The lesson discusses the different types of systems present in the world, namely those that are inert and those that are adaptive. Inert systems are those that can be described and predicted using a single global rule, such as those studied in physics and chemistry. On the other hand, adaptive systems are composed of elements with agency and capacity for adaptation, making them non-deterministic in their behavior. The overall organisation of adaptive systems emerges from how these elements respond to each other locally. Examples of adaptive systems include traffic, financial markets, social networks, ecosystems, politics, and businesses. The lesson also defines an adaptive agent as any entity that has agency and the capacity to make choices based on information to affect the state of their environment autonomously.