Game-theoretic Models

Game-theoretic models study strategic interactions among rational decision-makers, often referred to as "players." Each player chooses actions to maximize their own benefits while considering the potential choices of others. These models analyze situations like competition, negotiation, and cooperation, illustrating how individual decisions can lead to various outcomes, including win-win scenarios or conflicts. By representing these interactions mathematically, game theory helps predict behavior in economics, politics, biology, and more, providing insights into optimal strategies in complex environments where multiple agents influence one another.