Background
John von Neumann conceived of the basic precepts of game theory in 1928 when analyzing the game of poker. Von Neumann was a brilliant mathematician, so he put the precepts of game theory into a mathematical format, which he later expanded to apply to economics. But von Neumann’s first theorem, the minimax theorem as stated above was the basic foundation of game theory.
Von Neumann’s original insight was that when playing a zerosum, twoperson game, a person must make moves based on the probable moves of his competitor, assuming both players are rationale, and try to minimize the competitor’s maximum gain.
Therefore, every move in a game must be based on an assessment of what a competitor’s possible moves are.
Von Neumann’s original game theory, the minimax theorem, works only under the following conditions:

There are only two players.

Both players are rationale and desire to win and to avoid a loss.

It is a zerosum game (one player’s win is
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