Strategic Interactions

Strategic interactions occur when individuals or organizations make decisions that affect each other, considering how others might respond. Each party aims to maximize their own outcomes while anticipating the actions of others. It's like a game where each move depends on predicting what the other players will do. This concept helps explain behaviors in economics, politics, and business, where decisions are interconnected. Understanding strategic interactions helps people anticipate consequences, cooperate, or compete wisely, by recognizing that their choices influence and are influenced by others’ strategies.