Game theory is a branch of mathematics and economics that studies strategic decision-making among rational actors. It analyzes interactions where the outcome of one participant’s decision depends on the decisions of others. By modeling these scenarios as “games,” it seeks to understand optimal strategies and outcomes. Game theory has applications in various fields, from economics and politics to biology and computer science, providing insights into competitive behavior and cooperation. Its concepts, including Nash equilibrium and the prisoner’s dilemma, have had profound impacts on understanding human behavior in strategic situations.
