Utility function in game theory

A utility function in game theory is a mathematical way to represent a player's preferences over different outcomes. It assigns a numerical value—called utility—to each possible result, reflecting how desirable or preferable that outcome is for the player. This helps analyze decision-making, as players aim to maximize their utility. Essentially, it translates subjective preferences into a common scale, allowing for systematic comparison of choices and predicting strategic behavior in various situations.