Noncooperative Game Theory

Noncooperative game theory examines strategic interactions where each participant, or player, makes decisions independently to maximize their own benefit without cooperating or forming binding agreements. It analyzes how individuals choose their actions based on what they expect others to do, often leading to outcomes called Nash equilibria, where no one can improve their situation by changing their strategy alone. This framework helps understand competitive behaviors in economics, politics, and other fields, emphasizing self-interested decision-making within a structured setting.