Game Theory

Game Theory is the study of strategic decision making. It is usually used in economics, but can be applied to any situation where there are competing agents. Agents are usually rational, meaning they want to maximize their own utility. In a game, each agent has a set of strategies, and a utility function that assigns a value to each possible outcome of the game. The goal of game theory is to find a Nash equilibrium, meaning a set of strategies where no agent can improve their utility by switching to a different strategy.