Game-theoretic analysis

Game-theoretic analysis is a way to study situations where multiple decision-makers (players) interact, each with their own goals. It examines how their choices affect one another and seeks to find optimal strategies, often called "equilibria," where no player can do better by changing their decision alone. This approach helps predict outcomes in competitive, cooperative, or complex scenarios like auctions, negotiations, or markets, providing insights into strategic behavior and guiding decision-making for individuals and organizations.