Game Theory Applications

Game theory studies how individuals or groups make decisions when their choices affect each other. It helps predict outcomes in competitive situations like business negotiations, auctions, or pricing strategies, as well as cooperation scenarios like alliances or treaties. By analyzing possible moves and reactions, game theory guides decision-making to achieve optimal results or understand potential conflicts. It’s essentially a tool to strategize effectively when actions are interconnected, aiming to find balanced or advantageous outcomes in complex interactions.