The Theory of Games

The Theory of Games is a mathematical framework used to analyze strategic situations where multiple decision-makers, or players, interact. It helps predict outcomes by considering each player’s choices, goals, and possible responses. Think of it like a game of chess: each move depends on anticipating the opponent’s moves. This theory applies to economics, politics, business, and more, providing insights into how people or organizations make decisions when their interests conflict or align. It emphasizes the importance of strategy, rationality, and understanding others’ intentions to optimize results in competitive or cooperative scenarios.