Payoff Matrix

A payoff matrix is a tool used in decision-making to analyze the possible outcomes of different choices made by two or more participants, often in strategic situations. It’s presented as a table showing the results or "payoffs" for each combination of decisions. For example, in a business setting, it might show profits for two companies choosing to cooperate or compete. This helps individuals or organizations predict potential outcomes and make informed decisions based on likely responses from others involved.