The Game Theory

Game theory is the study of strategic decision-making where the outcome depends on the choices of multiple participants. It analyzes how individuals or groups evaluate their options, considering others’ actions, to maximize their benefits or minimize losses. Commonly used in economics, politics, and business, it helps predict behavior in competitive or cooperative situations, like auctions, negotiations, or pricing strategies. Essentially, game theory provides a framework for understanding how people behave when their success depends on anticipating others’ decisions.