Game Theory

Game theory is a mathematical framework for analyzing strategic interactions among rational decision-makers. It focuses on the choices made by individuals or groups in competitive situations where the outcome depends not only on their own decisions but also on the decisions of others. Key characteristics include concepts such as Nash equilibrium, dominant strategies, and zero-sum games. Game theory has applications in economics, political science, psychology, and biology, as well as in AI for developing algorithms that simulate competitive scenarios. It helps in understanding and predicting behaviors in various fields, making it a vital tool for strategists and analysts.