Game Theory

Game theory uses mathematics to model the interaction between two or more parties when they make decisions that will affect their outcomes. It sets up rules that determine each player's possible moves, the available information, and the various payoffs. Their actions are strategic in the sense that the actions of all parties are not fixed. The players have to make their best assessment of what to do in the face of actions of the other party and other variables to achieve an optimal outcome. Game theory has been used extensively in various fields, including economics, business, politics, social sciences, psychology, military planning, and more recently, biology.

Game theory originated shortly after World War II from work done by the mathematicians John von Neumann and Oskar Morgenstern ...