Game Theory and Decision Theory

Game Theory is a framework for analyzing situations where multiple individuals or entities make decisions that affect one another, emphasizing strategic interaction. It explores how rational players choose strategies to maximize their outcomes, often anticipating opponents' choices. Decision Theory, on the other hand, focuses on the process of making choices under uncertainty, examining how individuals evaluate risks and rewards to arrive at optimal decisions. In the context of philosophy and economics, both theories help explain behavior in competitive environments, from markets to social interactions, allowing for better understanding of human decision-making.