What is this thing called game theory?

Question

What is this thing called game theory?

Answer 1

Game theory refers to the systematic study of how rational agents behave in strategic situations where each agent must first know the decision of the other agents before knowing which decision is best for his/herself (Jehle & Reny, 2002). .... Game theory is traditionally used to analyse decision behaviour in the presence on interactions and dynamics between competing parties (Jou, 2007).

For more understanding grab any Intermidiate or Advanced Microeconomic Theory book.

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