Game theory is the study of how individuals make decisions in situations where their choices affect the outcomes of others. It is a branch of mathematics that has applications in a wide variety of fields, including economics, political science, and biology. Game theory can be used to analyze a wide range of interactions, from simple two-player games like Rock-Paper-Scissors to complex multi-player games like poker and chess.
Game theory is a powerful tool that can be used to understand how people make decisions and to predict the outcomes of interactions. It has been used to develop new strategies for businesses, governments, and individuals. One of the most important historical developments in game theory was the development of the Nash equilibrium, which is a concept that describes the optimal strategy for each player in a game. The Nash equilibrium is a powerful tool that can be used to analyze a wide range of games and to predict the outcomes of interactions.
