What Is the Game Theory?
Game theory is a branch of mathematics that studies strategic decision making. It provides tools for analyzing situations in which two or more players interact and compete with each other to achieve their own goals. The goal of game theory is to determine the optimal strategy for each player, given the strategies chosen by all other players. Game theory can be used to analyze any situation where there are multiple participants who must make decisions based on incomplete information about what others may do.
Game theory has been applied in many fields such as economics, political science, psychology, biology and computer science. In economics it helps explain how firms set prices and why they cooperate or compete with one another; in politics it explains voting behavior; in psychology it helps understand social interactions between people; and in biology it explains evolutionary dynamics among species competing for resources. Game theory also plays an important role in artificial intelligence research as algorithms are developed to play games against human opponents or even against themselves (e.g., AlphaGo).
Examples of Game Theory
Game theory is a branch of mathematics that studies strategic decision making. It provides a framework for analyzing interactions between two or more players, each trying to maximize their own payoff in the game. Examples of game theory can be found in many different areas, including economics, politics, and even sports.
In economics, game theory is used to analyze how firms interact with one another in competitive markets. For example, it can help explain why some firms choose to cooperate while others compete aggressively against each other. In politics, game theory has been used to study voting behavior and coalition formation among political parties. Finally, in sports such as football or basketball, coaches use game theory principles when deciding which strategies will give them the best chance of winning the match-up against an opponent team. Game theorists also look at how teams adjust their tactics over time based on what they learn from previous games played by both sides.