Game theory

Game Theory is a branch of mathematics used to study problems involving conflict and cooperation between different self-interested agents. It is used to analyze complex situations where decisions and interactions between multiple players affect the outcome. It can be seen as a tool to identify optimal solutions for strategic decisions.

Game Theory provides a framework for studying strategies of two or more players in a given game with certain assumptions about their behavior. Each player has a set of choices, or strategies, that affect the outcome of a given situation. The players attempt to find the best strategy in order to maximize their expected reward or minimize their expected loss. Game theory can be applied to virtually any situation involving multiple participants, including decision-making, cooperation, and economic structure.

In the realm of computer science, Game Theory is often used in artificial intelligence (AI) to create computer programs that make decisions in strategic and complex situations, such as computer chess and multi-player games. It is also used in other areas such as economic and marketing research.

Game Theory has a varied literature, drawing on disciplines such as economics, mathematics, sociology and psychology. Renowned game theorists include John von Neumann and John Nash, who developed the Nash Equilibrium, a solution concept of game theory which allows players to determine the best outcome in a zero-sum game.

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