GAME THEORY

It is a branch of mathematics and economics that studies the behaviour of decision-makers in strategic situations where the outcome of one participant's decision depends on the decisions of others.

Game theory provides a framework for analysing the behaviour of participants in these situations, called games, and predicting the outcome of those games. It seeks to understand how different strategies and choices affect the outcome of a game.

Some of the key concepts in game theory include: 1.Players:The individuals involved in a game 2.Strategies:The actions that a player can take 3.Payoffs:The rewards or penalties that a player receives 4. Nash equilibrium: State in which no player can improve their payoff

Game theory has a wide range of applications in fields such as economics, political science, psychology, and biology. It is also used to analyse market behaviour.